2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,900 units. (Round your intermediate calculation to two decimal place.) MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 1,900 Units Sales Revenue 49,400 $ Variable Costs 12,160 $ Contribution Margin 37,240 Fixed Costs Net Operating Income
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–2,000 units, and monthly production costs for the production of 1,700 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses.
| Production Costs | Total Cost | |
| Direct materials | $ | 2,100 |
| Direct labor | 8,100 | |
| Utilities ($130 fixed) | 590 | |
| Supervisor’s salary | 2,800 | |
| Maintenance ($310 fixed) | 530 | |
| 750 | ||
Suppose it sells each birdbath for $26.
how do i find the amount of fixed costs with this information
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