) Sara's Systems manufactures audio systems for cars. Two models are produced: The Standard model has a budgeted price of $230 and a standard variable cost of $110. The Blaster model has a budgeted price of $510 and a standard variable cost of $190. At thebeginning of the year, Sara estimated that she would sell 6,120 Blaster models and 24,480 Standard models. The actual results for the year showed that 7,090 Blaster models were sold for total revenues of $2,977,800. A total of 25,600 Standard models were sold forrevenues of $5,632,000.Compute the volume varianceCompute the mixquantity variances for the year.Start Me Up, Inc., manufacturers a caffeinated energy drink that sells for $4 each. The results for its first year of operations appear in the table below.number of drink produced-52000number of drink sold---50000-$0.55direct materials per drink-direct labor per drink-0.25variable manufacuring overhead per drink 0.15total fixed manufacuring overhead-39000total fixed selling and administrative costs ----50000Compute the income for the first year under absorption costing.Compute the income for the first year under variable costing.

Sara’s Systems:Volume Variance:Budgeted Sales: 6120 (Blaster) + 24480 (Standard) = 30600 unitsActual…

Answered: Compute the income for the first year…

FINANCIAL ACCOUNTING

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Steps performed in stage two of ABC costing include: i. computation of product cost per unit for each product lineii. assignment of costs to appropriate cost pooliii. computation of total activity cost for each product lineiv. computation of pool ratev. identication of cost poolsSelect the appropriate optiona. i, ii, iiib. ii, iii, ivc. iii, iv, vd. i, iii, ive. None of above
Windsor Company reports the following costs and expenses in May. Factory utilities Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager's salary From the information: (a) Manufacturing overhead $ LA $18,700 15,370 5,140 60,120 98,240 168,880 10,600 Office supplies used Determine the total amount of manufacturing overhead. Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising $84,680 56,020 3,050 1,670 2,440 18,300 3,160
All of the following are variable costs except for which of the following? Group of answer choices Production supervisor’s salary Sales commission based on number of sales units Direct material costs Direct labor costs
Hi-Tek Manufacturing, Incorporated, makes two industrial component parts-B300 and T500. An absorption costing income statement for the most recent period is shown below: Hi-Tek Manufacturing, Incorporated Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss Hi-Tek produced and sold 60,400 units of B300 at a price of $21 per unit and 12,800 units of T500 at a price of $39 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: Direct materials Direct labor Manufacturing overhead Cost of goods sold $ 1,767,600 1,212,922 554,678 610,000 $ (55,322) 8300 T500 $ 400,300 $ 162,400 $ 120,100. $ 42,400 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-sustaining (number of products) Other…
The equivalent units for the FIFO unit cost represent: a. work done during the current period. b. work done during the current period and the previous period. c. work done on units completed during the current period. d. work done during the previous period. e. the same thing as the equivalent units for the weighted average unit cost.
1. Compute an activity rate for each activity using activity-based costing.
The product costing method that includes fixed manufacturing cost in inventories costs is called Select one: Variable costing. O a. Ob. Direct costing. O c. Absorption costing. Od. Contribution margin. The strategy MOST likely to reduce the breakeven point would be to: Select one: Oa. Decrease the fixed costs and increase the contribution margin. Ob. Increase both the fixed costs and the contribution margin. on Increase the fixed costs and decrease the contribution margin. d. Decrease both the fixed costs and the contribution margin.
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Great Outdoze Company manufactures sleeping bags, which sell for $66.10 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $19.10 10.30 7.40 k Budgeted fixed overhead in 20x1 was $157,500 and budgeted production was 25,000 sleeping bags. The year's actual production was 25,000 units, of which 21,300 were sold. Variable selling and administrative costs were $1.30 per unit sold; fixed selling and administrative costs were $22,000. at
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Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year 60 24 24 $ 528,000 22 8 $4 $ 105,000 11 la. Assume the company uses absorption costing. Determine its product cost per unit. Absorption costing Per unit product cost using:

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Compute the income for the first year under absorption costing. Compute the income for the first year under variable costing.