22. Last year, XENOMORPH Corporation's variable costing net operating income was P52,400 and its ending inventory decreased by 1,400 units. Fixed manufacturing overhead cost was P8 per unit. What was the absorption costing net operating income last year? * а. Р41,200
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- Bell enterprises currently produces several products. Model L78 is showing a net operating loss as indicated by the following condensed income statement prepared for the year ended Dec 31. Sales (1500 units at $320). $480,000 Variable costs(1500 units at $240) $360,000 Contribution margin $120,000 Fixed cost. $125,000 Operating loss. $(5,000) You have been hired by Bell Ent to help analyse the decision as to whether to eliminate Model L78. Upon investigation you discover that if Model L78 is eliminated, $20,000 of the fixed costs shown on the above condensed income statement can be eliminated. The rest of the fixed costs allocated to Model L78 are common fixed costs that will be allocated to the remaining two products. Assess whether Bell Ent should discontinue Model L78.20. Crumbley Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Product P2 $48,000 $7,520 Product W4 Sales $16,000 Variable expenses $5,920 Fixed expenses for the entire company were $42,760. Determine the overall break-even point for the company in total sales dollars. bluo10 In July, TPM Co. incurred total costs of $60,000 and made 6000 units. In December it produced 4000 units and total costs were $40,000. What is the variable cost per unit? a. S12.00 b. $15.00 c. S10.00 d. $8.00
- Computing degree of operating leverage Following is the income statement for Marrow Mufflers for the month of June 2018: Requirements Calculate the degree of operating leverage. (Round to four decimal places.) Use the degree of operating leverage calculated in Requirement 1 to estimate the change in operating income if total sales increase by 40% (assuming no change in sales price per unit). (Round interim calculations to four decimal places and final answer to the nearest dollar.) Verify your answer in Requirement 2 by preparing a contribution margin income statement with the total sales increase of 400%.17. O Company produces a single product. Last year, the company had a net operating income of P92,000 using absorption costing and a net operating income of P98,600 using variable costing. If the fixed manufacturing overhead cost was P3.00 per unit for the last two years, and if production was 18,000 units, then sales in units last year were О а. 24,600 b. 20,200 с. 15,800 d. 15,000Revenue and cost details for a company’s single product are as follows: BWP per unit BWP per unit Sales price 27 Variable cost 15 Fixed cost 8 Profit (23) 4 Fixed costs are absorbed based on the company’s normal activity, which is also the company’s budgeted sales value for each period. Last period there were no changes in inventory and the company achieved a margin of safety of 20% of the actual sales volume. Fixed costs were over-absorbed by P2,400. Calculate the breakeven point in units for each period.
- Cc. 188.1. For The period just ended, the gross margin of Robin Company was P 3,840,000, the cost of goods manufactured was P 13,6000,000; the work in process inventory increased by P400,000 and finished goods ending inventories increased by P400,000 during the year, but the materials inventories decreased by P 120,000. Assuming that factory overhead is applied to production at 150% of direct labor cost but only 45% of material cost, how much is the total factory overhead applied to production? 2. A machine shop manufactures a stainless-steel part that is used in an assembled product. Materials charged to a particular job amounted to P6,000. At the point of final inspection, it was discovered that the material used was inferior to the specifications required by the engineering department; therefore, all units had to be scrapped. The revenue received for scrap is to be treated as a reduction in manufacturing cost but cannot be identified with a specific job. A firm price is not determinable for…Pacific Inc. has provided the following data for the latest quarter of the most recent year: Sales $300,000 Fixed manufacturing overhead 55,000 Direct labour 72,500 Fixed selling expense 46,250 Variable manufacturing overhead 41,000 Variable administrative expense 48,000 Direct materials 51,500 Fixed administrative expense 44,500 Variable selling expense 49,750 Assume that direct labour is a variable cost and that there was no beginning or ending inventories.The gross margin (loss) for Pacific for the latest quarter was? Multiple Choice $(12,500). $80,000. $131,500. $135,000.
- During the year, ABS Corporation produced 500 units of new products. The new product’s variable and fixed manufacturing ocst per unit were P5 and P 3, respectively. At the end of the period, the new product’s inventory consisted of 80 units. What would be the change in the peso amount of inventory at the end of the period if absorption costing were used instead of variable costing?The level of inventory of a manufactured product has increased by 7,741 units during a period. The following data are also available: Fixed Unit manufacturing costs of the period $7.00 Unit operating expenses of the period 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a[n) O $61.920 decrease Ob. 161.928 increase O$54.187 increase d. 554.107 decrease Variable $10.00The level of inventory of a manufactured product has increased by 7,859 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $8.00 Unit operating expenses of the period 4.00 2.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $78,590 increase Ob. $62,872 increase Oc. $78,590 decrease Od. $62,872 decrease