Aresia is the manager for Dawson Company. She budgeted for $230,000 in fixed MOH and $80 per unit for variable manufacturing costs for the upcoming fiscal year. She was planning to produce 8,000 units. Actual fixed MOH costs and actual variable manufacturing costs came in on budget but the company was only able to produce and sell 7,600 units. If the company uses absorption costing with standard costs, what is the company's initial COGS (before any variance is considered)? What is the adjusted COGS after writing off the variance directly to COGS?

Question

Quizplus · Accepted Answer

The Answer of Aresia is the manager for Dawson Company. She budgeted for $230,000 in fixed MOH and $80 per unit for variable manufacturing costs for the upcoming fiscal year. She was planning to produce 8,000 units. Actual fixed MOH costs and actual variable manufacturing costs came in on budget but the company was only able to produce and sell 7,600 units. If the company uses absorption costing with standard costs, what is the company's initial COGS (before any variance is considered)? What is the adjusted COGS after writing off the variance directly to COGS?

Aresia Is the Manager for Dawson Company