question archive In the coming year, Kalling Company expects to sell 28,700 units at $32 each
In the coming year, Kalling Company expects to sell 28,700 units at $32 each
Subject:AccountingPrice: Bought3
In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kalling's controller provided the following information for the coming year.
Units production ..........................................36000
Unit direct materials ........................................$9.95
Unit direct labor .............................................$2.75
Unit variable overhead .....................................$1.65
Unit fixed overhead* .......................................$2.50
Unit selling expense (variable) ...........................$2.00
Total fixed selling expense .............................$65,500
Total fixed administrative expense ..................$231,000
* The unit fixed overhead is based on 30,000 units produced.
1. Calculate the cost of one unit of product under absorption costing.
2.calculate the cost of one unit of product under variable costing
3. Calculate operating income under absorption costing for next ye
