Cecil Incorporated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold Assume no beginning inventory $50.00 $161,000 $189,000 $124,000 $70,000 $65,000 $12,000 21,000 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,100 units at a sale price of $45 per product? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.). OA. Decrease by $97,410 ОВ Increase by $361.590

Cecil Incorporated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold Assume no beginning inventory $50.00 $161,000 $189,000 $124,000 $70,000 $65,000 $12,000 21,000 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,100 units at a sale price of $45 per product? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.). OA. Decrease by $97,410 ОВ Increase by $361.590

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What would be the transfer price if Division X uses full absorption cost plus markup?
The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 33 Selling and administrative $ 16 Fixed costs per year: Production $ 130,830 Selling and administrative $ 107,280 Last year, 6,230 units were produced and 6,030 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
Garfield Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory Fixed manufacturing overhead in production Ending fixed manufacturing overhead in inventory $210,000 800,000 70,000 Beginning variable manufacturing overhead in inventory Variable manufacturing overhead in production Ending variable manufacturing overhead in inventory What is the difference between operating incomes under absorption costing and variable costing? OA. $10,000 OB. $80,000 O C. $100,000 O D. $140,000 $30,000 100,000 30,000
Menk Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.80 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 20,200 Sales commissions $ 0.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 10,100 Required: a. If 5,220 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. b. If 5,220 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,220 units are produced, what is the total amount of manufacturing overhead cost incurred? a. Variable cost per unit sold b. Total variable costs c. Total manufacturing overhead cost
Panta Corp had net income of P226,000 based on variable costing. Beginning and ending inventories were 7,400 units and 12,800 units, respectively. Assume the fixed overhead per unit was P5 for both the beginning and ending inventory. What is net income under absorption costing?
A company has a net income of $918,000 based on variable costing method. Beginning and ending inventories were 56,800 units and 55,600 units. Assume the fixed overhead per unit was $2.15 for both the beginning and ending inventory. What will be the net income under absorption costing?
Do not give answer in image
Front Company had net income of $88,500 based on variable costing. Beginning and ending inventories were 2,400 units and 4,400 units, respectively. Assume the fixed overhead per unit was $8.70 for both the beginning and ending inventory. What is net income under absorption costing? Multiple Choice • 89,700 • $29,340 $147,660 S105,900 • S71,100
The selected answer is incorrect
I need help with question is correct answer
A company provided the following information about its one and only product: $45,000 $30,000 $42,000 $8,000 $28,000 $12,000 $20 10,000 Direct material used Direct labour Fixed factory overhead Fixed Selling & administrative expenses Variable factory overhead Variable Selling & administrative expenses Selling price per unit Units produced The unit cost of a unit under the absorption costing approach is? a. $10.30 O b. $16.50 O c. $14.50 O d. $5.00
The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production Selling and administrative $ $ 35 14 Fixed costs per year: Production $216,300 $190,340 Selling and administrative Last year, 7,210 units were produced and 7,110 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be: