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Question
Heather, Incorporated reports the following annual cost data for its single product:Normal production and sales level 60,000 units
Direct materials $9.00 per unit
Direct labor $6.50 per unit
Variable overhead $11.00 per unit
Fixed overhead $720,000 in total
This product is normally sold for $56 per unit. If Heather increases its production to 80,000 units while sales remain at the current 60,000 unit level, by how much would the company's gross margin increase or decrease under absorption costing?
Answer
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Direct labor X X
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Variable manufacturing overhead
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Direct materials
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Match the following
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Given the Cool Pools Company data, what is net income using absorption costing?
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