p7-3b - Name Date Instructor Course Managerial Accounting...

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FileName: 9ecb6b6d99b9f757be22dde8b66e5239f44e093e.xls, Tab: Problem P7-3B, Page 1 of 2, 12/28/2011, 19:02:13 Name: Date: Instructor: Course: wide variety of applications. During the coming year it expects to sell 60,000 units for $20 per unit. Richard Starkey manages the division. He is considering producing either 60,000 or 100,000 units during the period. Other information is presented in the schedule. Division Information for 2005 Beginning inventory 0 Expected sales in units 60,000 Selling price per unit $20.00 Variable manufacturing costs per unit $9.00 Fixed manufacturing overhead costs (total) $240,000 Fixed manufacturing overhead costs per unit: Based on 60,000 units $4.00 per unit ($240,000 / 60,000 units) Based on 100,000 units $2.40 per unit ($240,000 / 100,000 units) Manufacturing cost per unit: Based on 60,000 units $13.00 per unit ($9.00 variable + $4.00 fixed) Based on 100,000 units $11.40 per unit ($9.00 variable + $2.40 fixed) Variable selling and admin expenses $1.00 Fixed selling and admin expenses (total) $30,000 Instructions: HARRISON PUMPS Income Statement For the Year Ended 2005 Absorption Costing Units to be produced: 60,000 100,000 Sales Formula Formula Title
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p7-3b - Name Date Instructor Course Managerial Accounting...

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