Hellman Manufacturing Has the Following Cost Information Available for 2009

question 80

Essay

Hellman Manufacturing has the following cost information available for 2009:
$\begin{array}{lr} \text { Direct materials } &\text {\( \$ 6.00 \) per unit}\\ \text { Direct labour } &\text {\( \$ 4.00 \) per unit}\\ \text { Variable manufacturing overhead} &\text {\( \$ 2.00 \) per unit}\\ \text { Variable selling and administrative costs } &\text {\( \$ 1.00 \) per unit}\\ \text { Fixed manufacturing overhead} &\$80000\\ \text {Fixed selling and administrative costs } &\$25000\\\end{array}$

During 2009,Merriman produced 12 500 units out of which 11 000 units were sold for $60 each.
Required:
A. Calculate Hellman's net income assuming the company uses variable costing.
B. Calculate Hellman's net income assuming the company uses absorption costing

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Definitions:

Consumer Data

Information relating to individuals who purchase or show interest in products and services, including personal details, buying habits, and preferences.

Antitrust Violation

Instances where businesses or individuals engage in practices that restrict competition, violate established antitrust laws, and harm consumers or the economy.

Restraints Of Trade

Legal restrictions placed on business practices that can limit competition or manipulate markets.

Economic Competition

The rivalry among businesses to attract customers and achieve a higher market share, driving innovation and efficiency.