Booti Booti Bottling Works Manufactures Glass Bottles

question 136

Essay

Booti Booti Bottling Works manufactures glass bottles.January and February operations were identical in every way except for the planned production.
January had a production denominator of 35 000 units.
February had a production denominator of 36 000 units.
Fixed manufacturing costs totalled $126 000.
Sales for both months totalled 45 000 units with variable manufacturing costs of $4 per unit.Selling and administrative costs were $0.40 per unit variable and $60 000 fixed.The selling price was $10 per unit.
Required:
Compute the operating profit for both months using absorption costing.
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Definitions:

Contingency-Oriented

An approach or mindset focused on planning and preparing for various possible futures or outcomes.

OB Theories

Theories in Organizational Behavior that examine how individuals and groups act within organizations, aiming to understand, predict, and influence employee behavior.

Authentic Laughter

Genuine laughter that reflects true amusement, joy, or happiness, as opposed to forced or fake laughter.

Physiological Benefits

The positive effects of activities or behaviors on the body's physical functioning, health, or well-being.