Assignment:
Paint More LLC has organized a new division to manufacture and sell specialty paint. The division's monthly costs are shown below:
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Manufacturing costs:
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Variable costs per unit:
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Direct materials
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$13
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Variable manufacturing overhead
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$5
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Fixed manufacturing overhead costs (total)
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$200,000
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Selling and administrative costs:
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Variable
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5% of sales
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Fixed (total)
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$33,000
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Because the production is highly automated, the company includes its labor costs in its fixed manufacturing overhead. The gallons of paint sell for $68 each. During September, the first month of operations, the following activity was recorded:
Units produced 9,000
Units sold 6,500
1. Compute the unit product cost under:
1. ABC
2. Variable costing
2. Prepare an absorption costing income statement for September
3. Prepare a contribution format income statement for September using ABC costing
In this forum, discuss in 5 pages the different forms of costing. Include example calculations and graphs. ApA