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Author Question: Universal Specialty Group produces a sports theme chair. The following information has been provided ... (Read 89 times)

kellyjaisingh

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Question 1

Under absorption costing, managers can increase operating income by holding less inventories at the end of the period.
◦ true
◦ false

Question 2

Universal Specialty Group produces a sports theme chair. The following information has been provided by management: 

Actual sales10,000 units
Budgeted production12,000 units
Selling price$425 per unit
Direct material costs$90.00 per unit
Fixed manufacturing costs$64.00 per unit
Variable manufacturing costs$50.00 per unit
Variable administrative costs$25.00 per unit

Required: 
a.What is the cost per statue if absorption costing is used?
b.What is the cost per statue if "super-variable costing" is used?
c. What is the total throughput contribution?


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Marked as best answer by kellyjaisingh on Mar 6, 2021

zhanghao

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