Don't use ai given answer accounting questions A company operated at full capacity during its first quarter and incurred the following costs:Production costs (15,000 units):⚫ Direct materials: $145,500Direct labor: $195,000Variable factory overhead: $210,000⚫ Fixed factory overhead: $85,000 Total production costs: $635,500Operating Expenses:Variable operating expenses: $112,500Fixed operating expenses: $37,500 Total operating expenses: $150,000If 1,500 units remain unsold at the end of the quarter and sales total $850,000, what would bethe operating income under variable costing?A) $119,550 B) $95,750 C) $87,250 D) $102,000

Step 1: Definition of Variable CostingVariable costing is a method where only variable production…

Answered: A company operated at full capacity…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CMA

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods Sold
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Kimber Company has the following unit costs for the current year: Raw materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost $20.00 25.00 10.00 15.00 $70.00 Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on these data, the total manufacturing cost expected to be incurred to manufacture 9,000 units in the current year is: Oa. $560,000. Ob. $615,000. Oc. $630,000. Od. $575,000.
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (10,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses a $28,200 b. $34,000 $80,000 120,000 140,000 40,000 Oc. $22,800 Od. $24,300 $65,000 25,000 90,000 If 600 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is $380,000
Assume that a company produced 10,000 units and sold 8,000 units during its first year of operations. It has also provided the following information: Particulars Per unit per year Selling price $240 Direct materials $85 Direct labor $57 Variable manufacturing overhead $10 Sales commission $11 Fixed manufacturing overhead ? Fixed selling and administrative expense $250,000 If the company's unit product cost under absorption costing is $197, then what is the amount of fixed manufacturing overhead per year?
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Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year ofoperations: Selling priceDirect materials Direct laborVariable manufacturing overhead $ 10Sales commission Fixed manufacturing overhead Per Unit Per Year$ 200$77$ 50$ 8$300,000 Using variable costing, what is the company's net operating income? $195,000 $275,000 $185,000 $175,000
Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: Selling price Direct materials Direct labor Variable manufacturing overhead Per Unit Per Year $ 200 $69 $ 50 $12 $8 Sales commission Fixed selling and administrative expense Fixed manufacturing overhead Using variable costing, what is the net operating income for the second year of operations? $ 110,000 $ 300,000
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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,800 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses a. $60,654 O b. $68,989 $175,000 225,800 263,200 c. $71,752 O d. $83,947 91,400 $121,500 42,100 163,600 If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is $755,400
The following information pertains to the first year of operation for Crystal Cold Coolers Incorporated: 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 ($217,000+3,100 units) Total variable selling expenses ($13 per unit sold) Total fixed general and administrative expenses Required: 3,100 2,400 $ 350 $ 65 $ 50 $ 13 $ 70 $ 31,200 $ 61,000 Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the year.

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