A business operated at 100% of capacity during its first month, with the following results:Sales (104 units) $520,000Production costs (130 units): Direct materials$65,000 Direct labor16,250 Variable factory overhead29,250 Fixed factory overhead26,000136,500Operating expenses: Variable operating expenses$5,970 Fixed operating expenses4,0009,970The amount of contribution margin that would be reported on the variable costing income statement isa. $519,870b. $510,030c. $421,630d. $425,630

The contribution margin is calculated by subtracting all variable expenses from revenue in a…

Answered: A business operated at 100% of capacity…

A business operated at 100% of capacity during its first month, with the following results: Sales (104 units) $520,000 Production costs (130 units): Direct materials $65,000 Direct labor

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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A business operated at 100% of capacity during its first month, with the following results: Sales (108 units) $648,000 Production costs (135 units): Direct materials $87,561 Direct labor 22,356 Variable factory overhead 39,123 Fixed factory overhead 37,260 186,300 Operating expenses: Variable operating expenses $5,388 Fixed operating expenses 4,203 9,591 The amount of operating income that would be reported on the absorption costing income statement is a.$523,380 b.$647,865 c.$519,177 d.$489,369
The section of Waterways that produces controllers for the company provided the following information. Sales for month of February 4,200 Variable manufacturing cost per unit $10.00 Sales price per unit $43.00 Fixed manufacturing overhead cost (per month for controllers) $83,000 Variable selling and administrative expenses per unit $2.90 Fixed selling and administrative expenses (per month for controllers) $13,250 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in dollars, and the margin of safety ratio for Waterways Corporation on this product. Contribution Margin Ratio (Round to 0 decimal places, e.g. 25%.) % Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) Break-even Point in Dollars $ Margin of Safety Ratio (Round to 1 decimal place, e.g. 5.2%.) %
A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) Production costs (100 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $40,000 20,000 2,000 7,000 $ 8,000 1,000 $90,000 69,000 9,000 What is the amount of the income from operations that would be reported on the variable costing income statement? a. $18,000 O b. $21,000 O c. $18,900 O d. $18,200
A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $480,000 Production costs (120 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: $60,000 15,000 27,000 24,000 126,000 Variable operating expenses $5,150 Fixed operating expenses 4,080 9,230 The amount of contribution margin that would be reported on the variable costing income statement is a. $470,770 Ob. $389,170 Oc. $393.250 Od. $479,880
The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($224,000/2,800 units) Total variable selling expenses ($11 per unit sold) Total fixed general and administrative expenses Complete this question by entering your answers in the tabs below. Full Absorption Costing LA LA LA LA LA Variable Costing $ $ $ Required: Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the year. 2,800 2,400 340 60 45 13 80 $ 26,400 $ 60,000
Crane Corporation produces and sells two products, Basic and Super. Data for activity during March are as follows: Basic Super Sales $213,000 $263,000 Contribution margin 25% 28% Total fixed costs $78,000 $78,000 Prepare a segment margin income statement. Omit the heading. Common fixed costs of $38,000 are allocated Basic and $43,000 to Super. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Basic Super Total $ $ $ tA
A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) Production costs (100 units): Direct materials $90,000 $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 Operating expenses: Variable operating expenses $8,000 Fixed operating expenses 1,000 69,000 9,000 What is the amount of the gross profit that would be reported on the absorption costing income statement? a. $21,000 b. $27,900 c. $18,000 d. $18,900
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 total contribution margin of Pacific for the latest quarter was? Multiple Choice $87,000. $176,000. $37,250. $211,000.
A manufacturer reports the following costs to produce 17,000 units in its first year of operations: direct materials, $17 per unit, direct labor, $13 per unit, variable overhead, $153,000, and fixed overhead, $204,000. The total product cost per unit under variable costing is: Multiple Choice $30 per unit. $26 per unit. $39 per unit.
Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed selling and administrative expenses Income $ 3,240,000 396,000 105,000 5,040,000 3,636,000 1,404,000 $ 60 per unit $ 22 per unit $ 8 per unit $ 528,000 per year $ 11 per unit $ 105,000 per year 105,000
Based on the following information, prepare a contribution margin income statement assuming the company uses variable costing. Annual production Sales price Variable production cost per unit Direct materials 50,000 units $40 per unit $10 3 Direct labor $25 per unit Manufacturing overhead Fixed production costs 12. $150,000 each year; $3 per unit at 50,000 units of production Variable selling and administrative cost $1 per unit Fixed selling and administrative cost $100,000 each year Sales: А. Var. Production В. Var Selling & Admin 50,000 1,300,000 Contribution Margin С. Fixed Expenses: Fixed Mfg Overhead 150,000 Fixed Selling & Admin 100,000 250,000 Net Income D.

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bartleby, a Learneo, Inc. business

Sales (104 units)		$520,000
Production costs (130 units):
Direct materials	$65,000
Direct labor	16,250
Variable factory overhead	29,250
Fixed factory overhead	26,000	136,500
Operating expenses:
Variable operating expenses	$5,970
Fixed operating expenses	4,000	9,970