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Santana Rey expected sales of her line of computer workstation furniture to equa

ID: 2374769 • Letter: S

Question

Santana Rey expected sales of her line of computer workstation furniture to equal 300 workstations (at a sales price of $3,600) for 2012. The workstations' manufacturing costs include the following.





Santana is considering how many workstations to produce in 2012. She is confident that she will be able to sell any workstations in her 2012 ending inventory during 2013. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations.

Compute Business Solutions' absorption costing income assuming. (Omit the "$" sign in your response.)



Compute Business Solutions%u2019 variable costing income assuming. (Omit the "$" sign in your response.)


Direct materials $ 740 per unit Direct labor $ 340 per unit Variable overhead $ 80 per unit Fixed overhead $ 19,200 per year

Explanation / Answer

Required:

1.

Compute Business Solutions' absorption costing income assuming. (Omit the "$" sign in your response.)


a.

300 Workstations

$

b.

320 Workstations

$


2.

Compute Business Solutions%u2019 variable costing income assuming. (Omit the "$" sign in your response.)


a.

300 Workstations

$

b.

320 Workstations

$

Required:

1.

Compute Business Solutions' absorption costing income assuming. (Omit the "$" sign in your response.)

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