AC505 Chap 7 Hmwk Solutions - Chapter 7 Variable Costing A...

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Unformatted text preview: Chapter 7 Variable Costing: A Tool for Management Exercise 7-1 (15 minutes) 1. Under absorption costing, all manufacturing costs (variable and fixed) are included in product costs. (All currency values are in thousands of rupiah, denoted by Rp.) Direct materials................................................................ Rp100 Direct labor....................................................................... 320 Variable manufacturing overhead..................................... 40 Fixed manufacturing overhead (Rp60,000 ÷ 250 units)... 240 Absorption costing unit product cost................................ Rp700 2. Under variable costing, only the variable manufacturing costs are included in product costs. (All currency values are in thousands of rupiah, denoted by Rp.) Direct materials................................................................ Rp100 Direct labor....................................................................... 320 Variable manufacturing overhead..................................... 40 Variable costing unit product cost..................................... Rp460...
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This note was uploaded on 03/26/2012 for the course AC505 AC505 taught by Professor Dillan during the Spring '10 term at Keller Graduate School of Management.

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AC505 Chap 7 Hmwk Solutions - Chapter 7 Variable Costing A...

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