Unit inventoriable costs under absorption costing and variable costing. Calculate the volume variance. Cost of goods sold at actual under absorption costing and variable costing.
Wooden Grain Co. has organized a new division to manufacture and sell specially designed tables for mounting and using personal computers. Its new plant is highly automated and requires high monthly fixed costs as shown below.
Variable costs per unit:
Direct materials P50
Direct labor 36
Fixed overhead 240,000
Selling and administrative costs:
Variable 12% of sales
Fixed 160,000
During the month of operations, the following activity was recorded:
Units produced 5,500
Units sold 5,200
Selling price per unit P300
Net materials variance-unfavorable 12,000
Net direct labor variance-favorable 5,000
Net variable overhead variance-favorable 2,500
The company has a normal capacity of 6,000 units
Required:
- Unit inventoriable costs under absorption costing and variable costing.
- Calculate the volume variance.
- Cost of goods sold at actual under absorption costing and variable costing.
Step by step
Solved in 2 steps with 2 images
