2.) Schubert Corporation manufactures and sells one product. In the company's first year of operations, the variable cost consisted solely of direct materials of $86 per unit. The annual fixed costs were $510,000 of direct labor cost, $2,210,000 of fixed manufacturing overbead expense, and $1,209,000 of fixed selling and administrative expense. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 34,000 units and sold 31,000 units. The company's only product is sold for $232 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses a variable costing system that assigns $15 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.
2.) Schubert Corporation manufactures and sells one product. In the company's first year of operations, the variable cost consisted solely of direct materials of $86 per unit. The annual fixed costs were $510,000 of direct labor cost, $2,210,000 of fixed manufacturing overbead expense, and $1,209,000 of fixed selling and administrative expense. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 34,000 units and sold 31,000 units. The company's only product is sold for $232 per unit. Required: a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year. b. Assume that the company uses a variable costing system that assigns $15 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2.) Schubert Corporation manufactures and sells one product. In the company's first year of
operations, the variable cost consisted solely of direct materials of $86 per unit. The
annual fixed costs were $510,000 of direct labor cost, $2,210,000 of fixed manufacturing
overhead expense, and $1,209,000 of fixed selling and administrative expense. The
company does not have any variable manufacturing overhead costs or variable selling and
administrative expenses. During its first year of operations, the company produced
34,000 units and sold 31,000 units. The company's only product is sold for $232 per unit.
Required:
a. Assume the company uses super-variable costing. Compute the unit product cost for the year
and prepare an income statement for the year.
b. Assume that the company uses a variable costing system that assigns $15 of direct labor cost
to each unit that is produced. Compute the unit product cost for the year and prepare an income
statement for the year.
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