A manufacturer reports the following costs to produce 25,000 units in its first year of operations: direct materials, $25 per unit, direct labor, $21 per unit, variable overhead, $250,000, and fixed overhead, $325,000. Of the 25,000 units produced, 23,700 were sold, and 1,300 remain in inventory at year-end. Under variable costing, the value of the inventory is: Multiple Choice $59,800. $72,800. $89,700. $76,700. $45,500.
A manufacturer reports the following costs to produce 25,000 units in its first year of operations: direct materials, $25 per unit, direct labor, $21 per unit, variable overhead, $250,000, and fixed overhead, $325,000. Of the 25,000 units produced, 23,700 were sold, and 1,300 remain in inventory at year-end. Under variable costing, the value of the inventory is: Multiple Choice $59,800. $72,800. $89,700. $76,700. $45,500.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 23E: Orinder Company provided the following information for the last calendar year: During the year,...
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Question
A manufacturer reports the following costs to produce 25,000 units in its first year of operations: direct materials, $25 per unit, direct labor, $21 per unit, variable
Multiple Choice
-
$59,800.
-
$72,800.
-
$89,700.
-
$76,700.
-
$45,500.
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