A company had an income of $60,000 using absorption costing for a given period. Beginning and ending inventories for that period were 13,000 units and 18,000 units, respectively. Ignoring income taxes, if the fixed overhead application rate was $3.00 per unit, what was the income using variable costing? A. $75,000. B. $60,000. C. $45,000. D. Not sufficient information to determine.

A company had an income of $60,000 using absorption costing for a given period. Beginning and ending inventories for that period were 13,000 units and 18,000 units, respectively. Ignoring income taxes, if the fixed overhead application rate was $3.00 per unit, what was the income using variable costing? A. $75,000. B. $60,000. C. $45,000. D. Not sufficient information to determine.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...

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The following information pertains to Vladamir, Inc., for last year: There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3. Assume the selling price per unit is 29. Prepare an income statement using (a) variable costing and (b) absorption costing.
To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.
what was the income using variable costing. Sub - Account
NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending inventories for the period are 12,000 units and 18,000 units respectively. Ignoring income taxes, if the fixed overhead application rate is P2.50 per unit, what would the income have been using variable costing? A.P77,500 B. P60,000 C. P52,500 D. P50,000
A company had income of P50,000 using variable costing for a given period. Beginning and ending inventories for that period were 13,000 units and 18,000 units, respectively. Ignoring income taxes, if the fixed overhead application rate were P2.00 per unit, what would the income have been using absorption costing?
3.17 A company had income of P30,000 using absorption costing for a given period. Beginning and ending inventories for that period were 13,000 and 18,000 units, respectively. The fixed overhead application rate was P2 per unit. (Ignore income taxes). What would the income be if variable costing was used?
3.16 A company had income of P40,000 using variable costing for a given period. Beginning and ending inventories for that period were 18,000 and 13,000 units, respectively. Ignoring income taxes, if the fixed overhead application rate was P7 per unit, what would the income be if absorption costing was used? 3.17 A company had income of P30,000 using absorption costing for a given period. Beginning and ending inventories for that period were 13,000 and 18,000 units, respectively. The fixed overhead application rate was P2 per unit. (Ignore income taxes). What would the income be if variable costing was used? 3.18 Perspire company produces a single product. Last year, the company's net operating income computed using absorption costing method was P6,400 and its operating income computed using variable costing method was P9,100. The company's unit product cost was P16 under variable costing and P20 under absorption costing. If the ending inventory consisted of 2,100 units, the beginning…
Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $175; Variable costs per unit includes: Direct material $60, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $45,000. What is the contribution margin percentage? O a. 56.6% O b. 61.1% O c. None of the given answers d. 50.9% Ое. 49.1%
NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending inventories for the period are 12,000 units and 18,000 units respectively. Ignoring income taxes, if the fixed overhead application rate is P2.50 per unit, what would the income have been using variable costing? P77,500 P60,000 P52,500 P50,000
3.16 A company had income of P40,000 using variable costing for a given period. Beginning and ending inventories for that period were 18,000 and 13,000 units, respectively. Ignoring income taxes, if the fixed overhead application rate was P7 per unit, what would the income be if absorption costing was used?
A company's operating income was $75,000 using variable costing for a given period. Beginning and ending inventories for that period were 46,000 units and 51,000 units, respectively. Ignoring income taxes, if the fixed factory overhead application rate was $8.10 per unit, what would operating income have been using full costing? Multiple Choice $32,250. $115,500. Cannot be determined from the information given. $150,000. $102,000.
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