3. Income statements - absorption costing vs direct costing. The Denton Corporation produced 24,000 units (normal capacity) of product during the first quarter of the year; 20,000 units were sold at $22 per unit. The costs of this production were: Materials.... Direct labor Factory overhead: Variable cost 120,000 96,000 Fixed cost. Marketing and administrative expenses for the quarter total $70,000; all are fixed expenses. Required: (1) An income statement using absorption costing. (2) An income statement using direct costing. $ 60,000 60,000
3. Income statements - absorption costing vs direct costing. The Denton Corporation produced 24,000 units (normal capacity) of product during the first quarter of the year; 20,000 units were sold at $22 per unit. The costs of this production were: Materials.... Direct labor Factory overhead: Variable cost 120,000 96,000 Fixed cost. Marketing and administrative expenses for the quarter total $70,000; all are fixed expenses. Required: (1) An income statement using absorption costing. (2) An income statement using direct costing. $ 60,000 60,000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 5E: On April 30, the end of the first month of operations, Joplin Company prepared the following income...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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