variable cost per unit:
manufacturing direct material 6$
Direct labor 9$
Variable selling and administrative 4$
variable MOH 3$
Fixed per year:
Fixed Manufacturing Overhead 300,000$
Fixed selling and administrative 190,000
During a year, The company produce 25,000 Units and sold 20,000 units.The selling price of the company's product 50$ per unit
1.Assume that the company use absorption costing
a. compute the units product cost
b. prepare an income statement for the year.
2.Assume that the company use variable costing
a. compute the units product cost
b. prepare an income statement for the year.