Reference no: EM133115620
Question - Henry rollers produces industry used rollers. Last year, the company produced 19,000 units and sold all but only 2,000 units left. The rollers sell for $233 each. Costs incurred are listed here.
Material purchased $500,000
Materials used $400,000
Other variable manufacturing costs $600,000
Fixed manufacturing costs $112,000
Variable selling costs $180,000
Fixed selling and administrative costs $900,000
Beginning inventory last year held 2,000 rollers. The normal capacity is 29,000 units. Compute the volume variance to be adjusted/ deducted from cost of goods sold under absorption costing.
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