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Preferred Products has the following cost information

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Preferred Products has the following cost information available for 2009;Direct Materials $4.00 per unit;Direct Labor $3.00 per unit;Variable manufacturing overhead $2.00 per unit;Variable selling and administrative costs $1.00 per unit;Fixed manufacturing overhead $25,000;Fixed selling and administrative costs $10,000;During 2009, Preferred produced 5,000 units out of which 4,600 units were sold for $30 each.;A. Calculate Preferred's net income assuming the company uses variable costing.;B. Calculate Preferred's net income assuming the company uses absorption costing.

 

Paper#80832 | Written in 18-Jul-2015

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