EXERCISE 7-9 (20 MINUTES)

1. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH07 VARIBLE COSSTING TOOL FOR MANAGEMENT
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH07 VARIBLE COSSTING TOOL FOR MANAGEMENT

1. a. and b. Absorption

Costing Variable

Costing

Direct materials ... $48 $48

Variable manufacturing overhead ... 2 2

Fixed manufacturing overhead

($360,000 ÷ 12,000 units) ... 30 —

Unit product cost ... $80 $50