Ida Sidha Karya Company is a family-owned company located in the village of Gian

Question

Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $717. Selected data for the company's operations last year follow Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: 25,000 23,000 2,000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $160 $360 $ 53 S15 Fixed costs Fixed manufacturing overhead Fixed selling and administrative $610,000 $860,000 Required 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan Unit product cost 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan Unit product cost

Explanation / Answer

Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.

Under variable costing

Direct materials 160 Direct labor 360 Variable manufacturing overhead 53 Fixed manufacturing overhead 610000/25000 24.4 unit product cost 597.4

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.