Share
Explore BrainMass

Compute total manufacturing costs, absorption method

Ohio Company provided the following information regarding its only product--ice skates.

Direct materials used $300,000
Direct labor 80,000
Fixed overhead 100,000
Fixed selling and administrative costs 170,000
Variable overhead 20,000
Variable selling and administrative 90,000
Selling unit price 99
Units produced and sold 12,000

_____ is the total manufacturing cost if the absorption approach is used.

a $500,000
b $360,000
c $300,000
d $280,000

Solution Preview

The absorption approach takes into account all manufacturing ...

Solution Summary

The expert computes the total manufacturing costs and absorption methods.

$2.19