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Maiden Rock Company sells a single product for $25.  It had no beginning inventories.  Operating data follow.          Sales, 20,000 units                                    $500,000    Normal capacity                                    30,000 units    Production costs:       Variable per unit                                        $13       Fixed production                                    $150,000    Selling and administrative expenses:       Variable per unit sold                                    $2       Fixed selling                                        $20,000    Number of units produced                           32,500 units   Find Maiden Rock’s income under standard absorption costing.

Maiden Rock Company sells a single product for $25.  It had no beginning inventories.  Operating data follow.          Sales, 20,000 units                                    $500,000    Normal capacity                                    30,000 units    Production costs:       Variable per unit                                        $13       Fixed production                                    $150,000    Selling and administrative expenses:       Variable per unit sold                                    $2       Fixed selling                                        $20,000    Number of units produced                           32,500 units   Find Maiden Rock’s income under standard absorption costing.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 14E: A company has prepared the following statistics regarding its production and sales at different...
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Maiden Rock Company sells a single product for $25.  It had no beginning inventories.  Operating data follow.

     

   Sales, 20,000 units                                    $500,000

   Normal capacity                                    30,000 units

   Production costs:

      Variable per unit                                        $13

      Fixed production                                    $150,000

   Selling and administrative expenses:

      Variable per unit sold                                    $2

      Fixed selling                                        $20,000

   Number of units produced                           32,500 units

 

Find Maiden Rock’s income under standard absorption costing.

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