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Adams Company, a manufacturer of in home decorative fountains, began operations on September 1 of the current year. Its cost and sales information for this year follows. |
| Production costs | |||
| Direct materials | $ | 40 | per unit |
| Direct labor | $ | 60 | per unit |
| Overhead costs for the year | |||
| Variable overhead | $ | 3,000,000 | |
| Fixed overhead | $ | 7,000,000 | |
| Nonproduction costs for the year | |||
| Variable selling and administrative | $ | 770,000 | |
| Fixed selling and administrative | $ | 4,250,000 | |
| Production and sales for the year | |||
| Units produced | 100,000 | units | |
| Units sold | 70,000 | units | |
| Sales price per unit | $ | 350 | per unit |
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Attachments:
Adams Company….docx