All divisions use standard absorption costing. The division has the capacity to produce 50,000 units a quarter and quarterly fixed overhead amounts to $500,000. Variable production cost is $45 per unit. Roland has been looking at the report for the first three months of the year and is not happy with the results

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Originally Posted by avie2013

All divisions use standard absorption costing. The division has the capacity to produce 50,000 units a quater and quarterly fixed overhead amounts to $500,000. Variable production cost is $45 per unit. Roland has been looking at the report for the first three months of the year and is not happy with the results

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I have no doubt he is unhappy with insufficient information it is impossible to analyse or prepare a report