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$300,000Using 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 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$300,000Using variable costing, what is the company's net operating income? $195,000 $275,000 $185,000 $175,000

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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During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials Direct labor Variable overhead Fixed overhead The company produced 21,000 units, and sold 15,500 units, leaving 5,500 units in inventory at year-end. What is the value of ending inventory under variable costing? Multiple Choice $66,000 $115,500 $49,500 $5 $ 3 per unit per unit per unit $ 4 $ 189,000 per year $189,000
rker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year lows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($619,080 + 938,000 units) rker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used. Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,000,000 12,800,000 $ 15,360,000 336,000 $ 4,200,000 $ 1,700,000 $ 393,000 equired: alculate Parker Plastic's direct materials price and quantity variances. Standard Price (Rate) $ 1.30 $13.50 $ 1.30 per square foot per hour per hour Standard Uni Cost $11.70 4.05 0.39 0.66
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Wilco reports the following data for the most recent period: Variable MOH $40,000 Direct Materials $100,000 Direct Labor $80,000 Fixed MOH $20,000 Variable Admin Costs $20,000 Fixed Admin Costs $4,000 Units Produced 20,000 10,000 Units Sold Wilco's Variable Manufacturing Cost per Unit is what amount? ○ $22 per unit $12 per unit ○ $24 per unit O $11 per unit
Monroe Manufacturing produces and sells a product with a price of $100/unit. The following data has been prepared for its estimated upper and lower levels of activity. Production Category Lower Limit Upper Limit Units of Production 4,000 units 6,000 units Direct Materials $60,000 $90,000 Direct Labor $80,000 $120,000 Manufacturing Overhead: Indirect materials $25,000 $37,500 Indirect labor $40,000 $50,000 Depreciation $20,000 $20,000 Selling and Admin. Expenses: Sales salaries $50,000 $65,000 Office salaries $30,000 $30,000 Advertising $45,000 $45,000 Other $15,000 $20,000 Totals $365,000 $477,500 The only variable expenses for this company are Question 15 options: indirect materials, direct materials, and direct labor. all categories of selling and administrative expenses. indirect materials, indirect labor, direct materials, and direct labor. None of these.
pls show solutions Last year, Harris Company manufactured 17,000 units and sold 13,000 units. Production costs for the year were asfollows: Direct materials P153,000Direct labor P110,500Variable manufacturing overhead P204,000Fixed manufacturing overhead 255,000 Sales were P780,000 for the year, variable selling and administrative expenses were P88,400, and fixed selling and administrative expenses were P170,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the carrying value on the balance sheet of the ending inventory for the year wouldbe?
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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 of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 69 Direct labor $ 50 Variable manufacturing overhead $ 12 Sales commission $ 8 Fixed manufacturing overhead $ 300,000 Using variable costing, what is the company's contribution margin? Multiple Choice • $549,000 • $423,000 • $351,000 • $621,000
Product Data Model A Model B Units produced per year 10,000 100,000 Prime costs $153,000 $1,530,000 Direct labor hours 143,000 310,000 Machine hours 21,000 196,000 Production runs 40 60 Inspection hours 900 1,300 Maintenance hours 8,000 92,000 Overhead costs: Setup costs $300,000 Inspection costs 209,000 Machining 318,200 Maintenance 260,000 Total $1,087,200 2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.) Model A: overhead cost per unit Model B: overhead cost per unit Note: Be sure to complete both tables below. Activity Driver Activity Rate Setups Production runs per run Inspections Inspection hours per hour Machining Machine hours per hour Maintenance Maintenance hours per hour Overhead assignment Model A Model B Setups Inspections Machining…
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Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a price of $150 per unit. Direct materials $ 66 per unit Direct labor $ 25 per unit Variable overhead $ 9 per unit Fixed overhead $ 546,000 per year Variable selling and administrative expenses $ 10 per unit Fixed selling and administrative expenses $ 105,000 per year Exercise 19-3 (Algo) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.