Chapter 6 Variable Costing and Analysis Ramort Company reports the following cost data for its single product. The company regularly sells 20,000 units of its product at a price of $60 per unit. Compute gross margin under absorption costing. $10 per unit Direct materials $12 per unit Direct labor.. Overhead costs for the year Variable overhead $3 per unit Fixed overhead per year $40,000 ও Selling and administrative costs for the year Variable... ... $2 per unit Fixed. $65,200 Normal production level (in units)... 20,000 units Refer to the information about Ramort Company in QS 6-5. If Ramort doubles its production to 40,000 units while sales remain at the current 20,000-unit level, by how much would the company's groSs mag increase or decrease under absorption costing? wwwww Rofou

FINANCIAL ACCOUNTING
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Hi I'm looking for an explaination on how to compute gross margin under absorption costing with these twi connected problems. 

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Chapter 6 Variable Costing and Analysis
Ramort Company reports the following cost data for its single product. The company regularly sells
20,000 units of its product at a price of $60 per unit. Compute gross margin under absorption costing.
$10 per unit
Direct materials
$12 per unit
Direct labor..
Overhead costs for the year
Variable overhead
$3 per unit
Fixed overhead per year
$40,000
ও
Selling and administrative costs for the year
Variable...
... $2 per unit
Fixed.
$65,200
Normal production level (in units)...
20,000 units
Refer to the information about Ramort Company in QS 6-5. If Ramort doubles its production to 40,000
units while sales remain at the current 20,000-unit level, by how much would the company's groSs mag
increase or decrease under absorption costing?
wwwww
Rofou
Transcribed Image Text:Chapter 6 Variable Costing and Analysis Ramort Company reports the following cost data for its single product. The company regularly sells 20,000 units of its product at a price of $60 per unit. Compute gross margin under absorption costing. $10 per unit Direct materials $12 per unit Direct labor.. Overhead costs for the year Variable overhead $3 per unit Fixed overhead per year $40,000 ও Selling and administrative costs for the year Variable... ... $2 per unit Fixed. $65,200 Normal production level (in units)... 20,000 units Refer to the information about Ramort Company in QS 6-5. If Ramort doubles its production to 40,000 units while sales remain at the current 20,000-unit level, by how much would the company's groSs mag increase or decrease under absorption costing? wwwww Rofou
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