P10-1Absorption and variable costing income statementsBiscayne Industries has determined the cost of manufacturing aunit of product as follows, based on normal production of 100,000units per year:Direct materials.Direct labor...Variable factory overheadFixed factory overhead.Total cost.Operating statistics for March and April include the following:March12,0008,000Units produced.Units sold.Selling and administrativeexpenses (all fixed)...April$12,000$548,00012,000$12,000The selling price is $20 per unit. There were no inventories onMarch 1, and there is no work in process on April 30.33$15Required:Prepare comparative income statements for each month undereach of the following:1. Absorption costing (include under- or overapplied fixedoverhead).2. Variable costing.

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Answered: 10-1 Absorption and variable costing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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5 Vista Company reports the following information. Direct materials Direct labor Variable overhead Fixed overhead Units produced Compute its product cost per unit under absorption costing. Multiple Choice $76.00. $152.00. $171.00. $ 44 per unit 64 per unit $ 44 per unit $ 380,000 per year 20,000 units < Pr
1 of 12 Assignment: 1 Case: 1 The Cost Sheet of a product is given as under: Direct Materials Direct Wages Factory Overheads: Fixed Variable Administrative Expenses: Selling and Distribution Overheads: Fixed Variable Total OMR 6.00 3.00 0.50 0.50 0.75 0.25 0.50 11.50 The selling price per unit is OMR 13. The above figures are for an output of 85,000 units, the capacity of the firm is 100,000 units. A foreign customer is desirous of buying 15,000 units at a price of OMR 10.50 per unit. (A) Advise the manufacturer, whether the order should be accepted. (B) What will be your advice, if the orders were from a local merchant, at the same price? (C) What would be the profits, if the local selling price falls to OMR 11 from OMR 13, after acceptance of the order from a local merchant?
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Q – 9: Automobile Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard costs for one unit of product are as follows: Direct material: 6 ounces at $0.50 per ounce . . . . . . . . . . . . . . . . . . $3 Direct labor: 1.8 hours at $10 per hour . . . . . . . . . . . . . . . . . . . . . . . 18 Variable manufacturing overhead: 1.8 hours at $5 per hour . . . . . . . 9 Total standard variable cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . $30 During June, 2,000 units were produced. The costs associated with June’s operations were as follows: Material purchased: 18,000 ounces at $0.60 per ounce . . . . . . . $10,800 Material used in production: 14,000 ounces . . . . . . . . . . . . . . . . . — Direct labor: 4,000 hours at $9.75 per hour . . . . . . . . . . . . . . . . . $39,000 Variable manufacturing overhead costs incurred . . . . . . . . . . . . . $20,800 Required: Compute the…
Full Ton Company Financial Projection for Product USA For the Year Ended December 31, 20X2 Sales (100 units at $100 a unit)... $10,000 Manufacturing cost of good sold Direct Labor. $1,500 Direct Materials Used.. 1,400 Variable Factory Overhead. Fixed Factory Overhead.. Total Manufacturing cost of goods sold Gross Profit... 1,000 500 4,400 5,600 Selling Expenses: Variable. 600 Fixed 1,000 Administrative Expenses: Variable. 500 Fixed.... 1,000 Total selling and administrative expenses Operating Income.. _3,100 $ 2,500 Required: (1) How many units of Product USA would have to be sold to break even? (2) What would the operating income be if sales increase by 25%? (3) What would be the dollar sales at the breakeven point if fixed factory overhead increases by $1,700? (AICPA adapted)
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6 Dake Corporation's relevant range of activity is 2.000 units to 6.000 units. When it produces and sells 4,000 unts, its average costs per un are as follows Average Cost per Unit $ 6.55 $ 3.50 $ 1.40 $ 2.60 5.0.70 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense $ 0.40 Fixed administrative expense Sales commissions $ 1.50 Variable administrative expense $ 0.45 For financial reporting purposes, the total amount of product costs incurred to make 4.000 units is closest to Multiple Choice $56.200
5 Question: computer for product cost per unit under variable costing?
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