Cost Concepts Scenarios
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I am having a difficult tim understanding this. I have attached the spreadsheet and also the scenario. I needed it done yesterday:( Can someone help me.
In 2005, AFC produced 23,000 frames and provided 1,000 custom framing services and sold 20,000 frames. Holding the sales and framing service constant, suppose the president instructed manufacturing to produce at levels of 26,000 or 28,000 frames.
Using the sample format, create an Excel spreadsheet for AFC showing the full absorption cost at each level of production.
Write a two to three paragraph explanation as to why the president would want to do this and how this might create a future problem for AFC.
I came up with the fixed overhead cost at 77,000.00
Variable Manufacturing Cost of 11.91
Sales Revenue of 400,000.00
I am confused on how to get the fixed overhead per unit and the number of units, is the number of units the number produced or the number sold?
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Solution Summary
The solution examines cost concepts scenarios for AFC producer.
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