The following data are for the year ended December 31, 2021: Beginning Inventory 170,000 units Ending Inventory 69,000 units Sales 690,800 units Selling Price 33.00 per unit Variable manufacturing cost per unit 7.65 per unit Variable operating (marketing) cost per unit sold 1.65 per unit sold Fixed manufacturing costs 2,880,000 Fixed operating (marketing) costs 2,160,000 The Company budgeted: 450,000 units of goods sold in the month in which it occurs. Assume standard costs per unit are the same for units in beginning Also, assume no price, spending, or efficiency variances. Any production-volume variance is written off to cost of goods sold. Do not type dollar signs (S) or spaces (). What is the Company's Fixed Overhead Cost per unit? Sper unit What is the Company's Operating Income Difference? What is the Company's Production-Volume Variance (for Absorption)?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 14E: For each of the following independent situations, calculate the missing values: 1. The Belen plant...
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The following data are for the year ended December 31, 2021:
Beginning Inventory
170,000
units
Ending Inventory
69,000
units
Sales
690,800
units
Selling Price
33.00
per unit
Variable manufacturing cost per unit
7.65
per unit
Variable operating (marketing) cost per unit sold
1.65
per unit sold
Fixed manufacturing costs
2,880,000
Fixed operating (marketing) costs
2,160,000
The Company budgeted:
450,000
units of goods sold in
the month in which it
occurs.
Assume standard costs per unit are the same for units in beginning
inventory and units produced during the year.
Also, assume no price, spending, or efficiency variances. Any
production-volume variance is written off to cost of goods sold. Do
not type dollar signs ($) or spaces ().
What is the Company's Fixed Overhead Cost per unit?
Sper unit
What is the Company's Operating Income Difference?
What is the Company's Production-Volume Variance (for
Absorption)?
%24
Transcribed Image Text:The following data are for the year ended December 31, 2021: Beginning Inventory 170,000 units Ending Inventory 69,000 units Sales 690,800 units Selling Price 33.00 per unit Variable manufacturing cost per unit 7.65 per unit Variable operating (marketing) cost per unit sold 1.65 per unit sold Fixed manufacturing costs 2,880,000 Fixed operating (marketing) costs 2,160,000 The Company budgeted: 450,000 units of goods sold in the month in which it occurs. Assume standard costs per unit are the same for units in beginning inventory and units produced during the year. Also, assume no price, spending, or efficiency variances. Any production-volume variance is written off to cost of goods sold. Do not type dollar signs ($) or spaces (). What is the Company's Fixed Overhead Cost per unit? Sper unit What is the Company's Operating Income Difference? What is the Company's Production-Volume Variance (for Absorption)? %24
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