Homework SourseIda Sidha Karya Company is a familyowned company located in
Ida Sidha Karya Company is a family-owned company located in the village of Glanyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company’s operations last year follow:
Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.
Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
| Ida Sidha Karya Company is a family-owned company located in the village of Glanyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company’s operations last year follow: |
Solution
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2.
| Computation of Unit Product Cost | |
| Absorption Costing | |
| Direct Meterial | $ 100 |
| Direct Labour | $ 320 |
| Variable Manufactoring Overhead | $ 40 |
| Fixed Manufactoring Overhead ($60,000/250) | $ 240 |
| Unit Product Cost | $ 700 |
