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 $865. Selected data for the company’s operations last year follow:

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

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

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 $865. Selected data for the company’s operations last year follow:

Explanation / Answer

1 Direct materials 190 Direct labor 460 Variable manufacturing overhead 65 Fixed manufacturing overhead 50 =700000/14000 Unit product cost 765 2 Direct materials 190 Direct labor 460 Variable manufacturing overhead 65 Unit product cost 715

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