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Question 2 Superman Company, which has only one product, has provided the following data concerning its...

Question 2

Superman Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

RM140

Units in beginning inventory

500

Units produced

12,000

Units sold

11,800

Variable costs per unit:

Direct materials

RM35

Direct labor

RM22

Variable manufacturing overhead

RM18

Variable selling and administrative

RM15

Fixed costs:

Fixed manufacturing overhead

RM80,000

Fixed selling and administrative

RM175,000

The company produces the same number of units every month, although the sales in units vary from month to month. The company’s variable costs per unit and total fixed costs have been constant from month to month.

Required:

(a) Calculate the cost of one unit of product under absorption costing.

(b) Calculate the cost of one unit of product under variable costing.

(c) Calculate Superman’s next year operating income under absorption costing.

(d) Calculate Superman’s next year operating income under variable costing.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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