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Amanda [17]
3 years ago
15

Fasetech, Inc. has collected the following data.? (There are no beginning? inventories.)

Business
1 answer:
Dominik [7]3 years ago
5 0

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Units produced= 510 units

Sales price= $150 per unit

Direct materials= $16 per unit

Direct labor= $10 per unit

Variable manufacturing overhead= $10 per unit

Fixed manufacturing overhead= $16,000 per year

Variable selling and administrative costs= $9 per unit

Fixed selling and administrative costs= $10,500 per year

Units sold= 500

Under the absorption costing method, the fixed overhead costs get allocated as a product cost.

Unitary fixed overhead= 16,000/510= $31.37

Total unitary cost= direct material + direct labor + total overhead

TUC= 16 + 10 + (10 + 31.37)= $67.37

Income statement:

Sales= 500*150= 75,000

COGS= 67.37*500= (33,685)

Gross profit= 41,315

Total variable selling and administrative costs= (9*500)= (4,500)

Fixed selling and administrative costs= (10,500)

Net operating profit= 26,315

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