Reference no: EM132582572

Superman Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price                                       RM140

Units in beginning inventory                      500

Units produced                                    12,000

Units sold                                            11,800

Variable costs per unit:

Direct materials                        RM35

Direct labor                               RM22

Variable manufacturing overhead        RM18

Variable selling and administrative    RM15

Fixed costs:

Fixed manufacturing overhead         RM80,000

Fixed selling and administrative      RM175,000

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Required:

Question a) Calculate the cost of one unit of product under absorption costing.

Question b) Calculate the cost of one unit of product under variable costing.

Question c) Calculate Superman's next year operating income under absorption costing.

Question d) Calculate Superman's next year operating income under variable costing.