Chapter 8 Full Student Version

Chapter 8 Full Student Version - 8- 1 MANAGERIAL ACCOUNTING...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
8-1 MANAGERIAL ACCOUNTING RSM222 Variable Costing: A Tool for Management Chapter 8
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8-2 Overview of Absorption and Variable Costing Direct Materials Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling and Administrative Expenses Fixed Selling and Administrative Expenses Variable Costing Absorption Costing Product Costs Period Costs Product Costs Period Costs LO 1
Background image of page 2
8-3 Harvey Company produces a single product with the following information available: Number of units produced annually 25,000 Variable costs per unit: Direct materials, direct labour, and variable mfg. overhead 10 $ Selling & administrative expenses 3 $ Fixed costs per year: Manufacturing overhead 150,000 $ 100,000 $ Unit Cost Computations LO 1
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8-4 Unit product cost is determined as follows: Under absorption costing , selling and administrative expenses are always treated as period expenses and deducted from revenue as incurred. Absorption Costing Variable Costing Direct materials, direct labour, and variable mfg. overhead 10 $ 10 $ Fixed mfg. overhead ($150,000 ÷ 25,000 units) 6 - Unit product cost 16 $ 10 $ Unit Cost Computations LO 1
Background image of page 4
8-5 Income Comparison of Absorption and Variable Costing Let’s assume the following additional information for Harvey Company. 20,000 units were sold during the year at a price of $30 each. There were no units in beginning inventory.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/03/2012 for the course RSM 222 taught by Professor D.cianflone during the Spring '10 term at University of Toronto- Toronto.

Page1 / 18

Chapter 8 Full Student Version - 8- 1 MANAGERIAL ACCOUNTING...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online