EXERCISE 7-1 (15 MINUTES) (NOTE

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

1. Under absorption costing, all manufacturing costs (variable and fixed)

are included in product costs.

Direct materials ... Rp100

Direct labor ... 320

Variable manufacturing overhead ... 40

Fixed manufacturing overhead (Rp60,000 ÷ 250 units) .... 240

Unit product cost ... Rp700