Variable cost per unit: Direct labor Fixed manufacturing overhead S 330,06e s 95

Question

Variable cost per unit: Direct labor Fixed manufacturing overhead S 330,06e s 95,906 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its firs year of operations, Zola produced 24.000 units and sold 19,200 units. The selling price of the company's product is $68.40 per unit. Required: 1. Assume the company uses super-variable costing: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Req 1A Compute the unit product cost for the year. Assume the company uses super-variable costing Req 1B > 8 of 8

Explanation / Answer

Super variable costing method :

Unit product cost = Direct material per unit = $19 per unit

Income statement :

Sales (19200*68.40) 1313280 Less : Variable cost (19200*19) (364800) Contribution margin 948480 Fixed expense Less; Direct labour (336000) Less: Fixed manufacturing overhead (330000) Less: Fixed selling and administrative expense (95000) Net operating income 187480

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