Bracey Company manufactures and sells one product. The following information pertains to the company’s first year of operations: Variable cost per unit: Direct materials $ 19 Fixed costs per year: Direct labor $ 250,000 Fixed manufacturing overhead $ 300,000 Fixed selling and administrative expenses $ 90,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Bracey produced 20,000 units and sold 18,000 units. The selling price of the company’s product is $55 per unit. Q. AReconcile the difference between the super-variable costing and variable costing net operating incomes. Q. B. Reconcile the difference between the super-variable costing and absorption costing net operating incomes.
Bracey Company manufactures and sells one product. The following information pertains to the company’s first year of operations: Variable cost per unit: Direct materials $ 19 Fixed costs per year: Direct labor $ 250,000 Fixed manufacturing overhead $ 300,000 Fixed selling and administrative expenses $ 90,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Bracey produced 20,000 units and sold 18,000 units. The selling price of the company’s product is $55 per unit. Q. AReconcile the difference between the super-variable costing and variable costing net operating incomes. Q. B. Reconcile the difference between the super-variable costing and absorption costing net operating incomes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bracey Company manufactures and sells one product. The following information pertains to the company’s first year of operations:
| Variable cost per unit: | ||
| Direct materials | $ | 19 |
| Fixed costs per year: | ||
| Direct labor | $ | 250,000 |
| Fixed manufacturing |
$ | 300,000 |
| Fixed selling and administrative expenses | $ | 90,000 |
The company does not incur any variable
Q. AReconcile the difference between the super-variable costing and variable costing net operating incomes.
Q. B. Reconcile the difference between the super-variable costing and absorption costing net operating incomes.
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