The following data are for the year ended December 31, 2021: Beginning Inventory170,000units Ending Inventory69,000units Sales690,800units Selling Price33.00per unit Variable manufacturing cost per unit7.65per unit Variable operating (marketing) cost per unit sold1.65per unit sold Fixed manufacturing costs2,880,000 Fixed operating (marketing) costs2,160,000 The Company budgeted:450,000units 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 ($) or spaces (_). What is the Company's Fixed Overhead Cost per unit?$per unit What is the Company's Operating Income Difference?$ What is the Company's Production-Volume Variance (for Absorption)?$

An income statement is a financial report that indicates the revenue and expenses of a business. It…

Answered: The following data are for the year…

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 6E: The fixed overhead budgeted for Ranier Industries at an expected capacity of 500,000 units is...

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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?	$per unit
What is the Company's Operating Income Difference?	$
What is the Company's Production-Volume Variance (for Absorption)?	$

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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