Lukin Corporation Reports the Following First Year Production Cost Information

question 78

Essay

Lukin Corporation reports the following first year production cost information:
$\begin{array}{ll}\text { Units produced } & 62,000 \text { units } \\\text { Units sold } & 59,000 \text { units } \\\text { Sales price } & \$ 350 \text { per unit } \\\text { Direct labor } & \$ 41 \text { per unit } \\\text { Direct materials } & \$ 15 \text { per unit } \\\text { Variable overhead } & \$ 9,300,000 \text { in total } \\\text { Fixed overhead } & \$ 4,340,000 \text { in total } \\\text { Operating expenses } & \$ 1,000,000\end{array}$ a.Compute production cost per unit under variable costing.
b.Compute production cost per unit under absorption costing.
c.Determine the net income using variable costing.
d.Determine the net income using absorption costing.

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Definitions:

Symbol

A graphical representation used to convey information or specifications.

Maximum Straightness Tolerance

The highest allowable deviation from a perfectly straight line that a component or feature can have.

MMC

Maximum Material Condition, a concept in dimensioning and tolerancing where a part contains the maximum amount of material within the specified limits.

Maximum Material Limit

A specification in tolerance designating the largest permissible size of a feature without violating the part's functional requirement.