Abdul Soda has provided the following data for the year 20X9: Category Actual Sales Data 1,200 units @ $480 each 1,100 units $500 per unit Budgeted Sales Volume Standard Selling Price Budgeted Contribution per Unit $220 Budgeted Profit per Unit $180 Required: Calculate the Sales Volume Variance (under absorption and marginal costing) and the Sales Price Variance

Abdul Soda has provided the following data for the year 20X9: Category Actual Sales Data 1,200 units @ $480 each 1,100 units $500 per unit Budgeted Sales Volume Standard Selling Price Budgeted Contribution per Unit $220 Budgeted Profit per Unit $180 Required: Calculate the Sales Volume Variance (under absorption and marginal costing) and the Sales Price Variance

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 22E: Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart...

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JPL, Incorporated has provided its sales and expense data for the most recent period. The Controller has asked you prepare a spreadsheet that shows the related CVP Analysis computations. Given the following information complete a CVP analysis for JPL, Incorporated: Unit sales Selling price per unit Variable expenses per unit Fixed expenses 11,200 units $ 75 per unit $45 per unit $ 210,000 Required: Use the data to answer the following. 1. Compute the CM ratio and variable expense ratio. 2. Compute the break-even sales. 3. Compute the margin of safety. 4. Compute the degree of operating leverage.
The following data are for Elm Leaf Apparel: Sales volume (units): Product XX Product YY Sales price: Product XX Product YY Variable cost per unit: A Product XX Product YY East 8,000 6,000 $22 $26 $13 $16 West 6,400 12,800 a. Determine the contribution margin for Product YY. $21 $28 $13 $16 b. Determine the contribution margin for the West Region.
Contribution Margin by Segment The following data are for Elm Leaf Apparel: East West Sales volume (units): Product XX 8,600 7,000 Product YY 2,700 4,100 Sales price: Product XX $20 $18 Product VY $26 $25 Variable cost per unit: Product XX $12 $12 Product YY $16 $16 a. Determine the contribution margin for Product YY. b. Determine the contribution margin for the West Region.
Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. A. Determine the total costs and the total cost amount per unit for the production and sale of 10,000 cellular phones. B. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. C. Determine the selling price of cellular phones. (Round markup to the nearest dollar.)
Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?
Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Quality Cost Report Whitley Company had total sales of 1,000,000 for the year ending 20X1. The costs of quality are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution.
Variable-Costing Income Statement Refer to the data for Osterman Company on the previous page. Required: 1. Calculate the cost of goods sold under variable costing. 2. Prepare an income statement using variable costing. Use the following information for Brief Exercises 3-23 and 3-24: During the most recent year, Osterman Company had the following data:
Variable cost method of product pricing Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. A. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. B. Determine the variable cost markup percentage (rounded to two decimal places) for cellular phones. C. Determine the selling price of cellular phones. (Round markup to the nearest dollar.)
A product has a sales price of $175 and a per-unit contribution margin of $75. What is the contribution margin ratio?
Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?
When prices are rising (inflation), which costing method would produce the highest value for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)