2001:05:03McGrawHillAssume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations:Per Unit$ 200$ 76$ 50$ 10$ 8Multiple ChoicePer YearSelling priceDirect materialsDirect laborVariable manufacturing overheadSales commissionFixed manufacturing overheadWhich of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income?$ 291,000The absorption costing net operating income will be lower than the variable costing net operating income by $29,100.The absorption costing net operating income will be lower than the variable costing net operating income by $101,100.The absorption costing net operating income will be higher than the variable costing net operating income by $29,100.The absorption costing net operating income will be higher than the variable costing net operating income by $101,100.Prev20 of 25Next >

Absorption Costing: All manufacturing costs, including fixed manufacturing overhead, are treated as…

Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year $ 200 Selling price Direct materials Direct labor Variable manufacturing overhead $76 $ 50 Multiple Choice $ 10 $8 Sales commission Fixed manufacturing overhead $ 291,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? The absorption costing net operating income will be lower than the variable costing net operating income by $29,100. The absorption costing net operating income will be lower than the variable costing net operating income by $101,100. The absorption costing net operating income will be higher than the variable costing net operating income by $29,100. The absorption costing net operating income will be higher than the variable costing net operating income by $101,100.

Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year $ 200 Selling price Direct materials Direct labor Variable manufacturing overhead $76 $ 50 Multiple Choice $ 10 $8 Sales commission Fixed manufacturing overhead $ 291,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? The absorption costing net operating income will be lower than the variable costing net operating income by $29,100. The absorption costing net operating income will be lower than the variable costing net operating income by $101,100. The absorption costing net operating income will be higher than the variable costing net operating income by $29,100. The absorption costing net operating income will be higher than the variable costing net operating income by $101,100.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare the income statement for the year ended 31 December 2020 using: Absorption costing Variable costing
Brand Company provides the following information about its single product. Targeted operating income $35,000 Selling price per unit $7.85 Variable cost per unit $6.10 Total fixed cost $96,250 What is the contribution margin per unit at the Brand Company? A) $6.10 B) $1.75 C) $0.22 D) $13.95
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $110 per unit, and fixed manufacturing costs are $112,000. Sales are estimated to be 4,200 units. If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar. a. How much would absorption costing income from operations differ between a plan to produce 4,200 units and a plan to produce 5,600 units? b. How much would variable costing income from operations differ between the two production plans?
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The following information is for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year Selling price Direct materials $200 $ 70 $ 50 Direct labor $ 10 $ 8 Variable manufacturing overhead Sales commission Fixed manufacturing overhead $285,000 0:36:03 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating Income? Multiple Choice The absorption costing net operating income will be lower than the variable costing net operating income by $100,500.
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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1. If the company uses absorption costing ,variable costing and super-variable costing What is the product cost per unit for 2020? . What is the 2020 net operating income? Please answer all the three methods
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Per Unit $ 200 $ 72 $ 50 $ 10 $8 Multiple Choice $ 287,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? The absorption costing net operating income will be lower than the variable costing net operating income by $28,700. The absorption costing net operating income will be lower than the variable costing net operating income by $100,700. Per Year The absorption costing net operating income will be higher than the variable costing net operating income by $28,700.
Required information [The following information applies to the questions displayed below] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,700 units at $280 each) Variable costs (9,700 units at $210 each) Contribution margin Fixed costs Income 1. Amount of sales 2. Margin of safety 1. Assume Hudson has a target income of $163,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) $ 2,716,000 2,037,000 679,000 441,000 $ 238,000 %
Consider the following information for Presidio Incorporated's most recent year of operations. Number of units produced Number of units sold Sales price per unit Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($282,960 2,400 units) Total variable selling expenses ($14 per unit sold) Total fixed general and administrative expenses Complete this question by entering your answers in the tabs below. Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a contribution margin income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing. Req 2A Reg 2B 2,400 1,500 $ 630.00 65.00 95.00 45.00 117.90 Req 3 Gross Margin Less: Non-Manufacturing Expenses 21,000.00 74,000.00 Complete a full absorption costing income statement for Presidio.…