Nisse AB manufactures insulating materials of different thicknesses in the same production facility. The company manufactures three different product variants (PV) in thicknesses of 10 mm, 20 mm and 30 mm. For the coming years, the following production is planned: PV Thickness Quantity 1 10 mm 15 000 2 20 mm 30 000 3 30 mm 15 000 The total manufacturing cost is estimated at SEK 3,000,000. Calculate the cost of the different product variants using an equivalent calculation
Nisse AB manufactures insulating materials of different thicknesses in the same production facility. The company manufactures three different product variants (PV) in thicknesses of 10 mm, 20 mm and 30 mm. For the coming years, the following production is planned: PV Thickness Quantity 1 10 mm 15 000 2 20 mm 30 000 3 30 mm 15 000 The total manufacturing cost is estimated at SEK 3,000,000. Calculate the cost of the different product variants using an equivalent calculation
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter19: Support Department And Joint Cost Allocation
Section: Chapter Questions
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Nisse AB manufactures insulating materials of different thicknesses in the same production facility. The company manufactures three different product variants (PV) in thicknesses of 10 mm, 20 mm and 30 mm. For the coming years, the following production is planned:
PV Thickness Quantity
1 10 mm 15 000
2 20 mm 30 000
3 30 mm 15 000
The total
Calculate the cost of the different product variants using an equivalent calculation
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