Artistic Frames Inc. produces a single product. Artistic Frames Inc. produces a single product. Variableproduction costs are $15 per unit, and variable selling andadministrative expenses are $5$5 per unit. Fixedmanufacturing overhead totals $45,000, and fixed sellingand administration expenses total $52,000. Assuming abeginning inventory of zero, production of 5,000 unitsand sales of 4,200 units, the dollar value of the endinginventory under variable costing would be: a. $12,000 b.$15,000 c. $20,000 d. $25,000

Explanation of Variable Production Cost:Variable production cost refers to the direct cost incurred…

Answered: Artistic Frames Inc. produces a single…

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 4BE

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Grainger Company produces only one product and sells that product for $100 per unit. Cost information for the product is: Selling expenses are $4 per unit and are all variable. Administrative expenses of $20,000 are all fixed. Grainger produced 5,000 units; sold 4,000; and had no beginning inventory. A. Compute net income under absorption costing variable costing B. Reconcile the difference between the income under absorption and variable costing.
Submarine Company produces only one product and sells that product for $150 per unit. Cost information for the product is as follows: Selling expenses are $2 per unit and are all variable. Administrative expenses of $15,000 are all fixed, Submarine produced 2.000 units and sold 1.800. Grainger had no beginning inventory. A. Compute net income under absorption costing variable costing B. Reconcile the difference between the income under absorption and variable costing.
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Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $101 per unit, and fixed manufacturing costs are $128,700. Sales are estimated to be 7,800 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,800 units and a plan to produce 9,900 units? b. How much would variable costing operating income differ between the two production plans? $ 0
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