Cost-Based Pricing and Markups with Variable Costs Compu Services provides computerized inventory consulting. The office and computer expenses are $600,000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20,000, and the average consulting hour has $30 of variable costs. (a) If the company desires a profit of $160,000, what should it charge per hour? $Answer (b) What is the markup on variable costs if the desired profit is $240,000? Answer % (c) If the desired profit is $60,000, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit? Markup to cover unassigned costs Answer % Markup to cover desired profits Answer %

Q: man either find a way to lower costs or deter roduction report will help them see how mu can…

A: A production cost report assigns cost to the units transferred completed and ending inventory. It…

Q: The following data were adapted from a recent income statement of The Bluth Company: (in millions)…

A: Lets understand the basics.Income statement can be prepared using,(1) Variable costing system(2)…

Q: پیر A Barnes Company reports the following operating results for the month of August: sales $300,000…

A: MARGINAL COSTING INCOME STATEMENT  Marginal Costing Income Statement is One of the Important Cost…

Q: Need Answer

A: Step 1: Show formula version of the solution sheet for a better understanding of the calculations:…

Q: Presented here is the income statement for Big Sky Incorporated for the month of February: $ 60,500…

A: An income statement is prepared by the business entities so as to know how much amount of…

Q: Number of customers (a) Sales revenue (a* $200) Variable cost (ax $140) Contribution margin Pixed…

A: Costs are divided into two types which are,(1) Fixed cost: Fixed costs are expenses that do not vary…

Q: ancome statements During the first month of operations ended July 31, Vian Inc, manufactured 10,600…

A: The income statement tells about the profitability of the business for the current period. The net…

Q: Required Information [The following information applies to the questions displayed below.] Oak Mart,…

A: VARIABLE COSTINGVariable Costing is a Cost Managerial Accounting Method in which all Variable Cost…

Q: Absorption Costing Income Statement On October 31, the end of the first month of operations,…

A: Absorption costing is a method of costing in which product cost is calculated by adding direct…

Q: Your company opens and starts production this year and has variable costs per unit of $5,674 and…

A: Hence, under variable costing the amount of inventory reported is higher as compared to the amount…

Q: Sunland Company reports the following operating results for the month of August: sales $300,000…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…

Q: Cost-Based Pricing and Markups with Variable Costs Compu Services provides computerized inventory…

A: A business's planning and budgeting processes incorporate desired profit. It supports the…

Q: Effects of differing production levels on absorption costing income: Metrics to minimize inventory…

A: Absorption costing is the method of coating which charges all the manufacturing cost which may be…

Q: Fletcher Corporation prepared the following income statement for the fourth quarter in 2018. Sales…

A: The income statement is very important because it presents the profitability of the entity. The…

Q: The vice-president, sales of Sweet Acacia Corporation has received the following income statement…

A: Absorption costing also called as historical costing is the practice of charging both fixed and…

Q: Construct a cost-volume-profit chart indicating the break-even sales for the current year, assuming…

A: Break even sales is the sales level where total revenue is equal to total expenses. No profit and no…

Q: The condensed product-line income statement for Dish N' Dat Company for the month of May is as…

A: The differential analysis is used to analyze the cost and benefit of the two alternatives. It helps…

Q: Instructions a. Prepare a responsibility report for the patio furniture division for the year. a.…

A: A budget report is a report that states all the revenue and expenses to be incurred by the…

Q: Northern Lights Company Product-Line Income Statement For the Month Ended August 31

A: Differential analysis provides a structured approach for assessing the financial implications of…

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…

Q: The controller for Dohini Manufacturing Company felt that the number of purchase orders alone did…

A: Cost Formula: A cost equation is a mathematical formula that a business may use to estimate the…

Q: I want the solution for correct answer

A: Step 1: Introduction to the Absorption Costing:Absorption costing is a method that allocated fixed…

Q: A company with average operating assets of $1,500,000 has the following income statement amounts:…

A: Return on Investment = Net Profit / Investment in Operating Assets * 100

Q: 1. Prepare the current-year income statement for the company using variable costing. Sales Less:…

A: The income statement tells about the profitability of the business for the current period. The…

Q: I need help with question

A: The gross margin in absorption costing is determined as the difference between sales revenue and the…

Q: Prepare a margin me statement; statement for Big Shot Inc. for the month of May: Sales late…

A: The company's financial performance over a specific time period is explained in the income…

Q: Answer the following question(s) using the information below. Jeppson Company manufactures computer…

A: Variable cost is that which vary according to the level of production.

Q: Costmore Manufacturing has provided the following operating results for its first year operations:…

A: Under absorption costing, both fixed and variable manufacturing costs are included in the product…

Q: Barnes Company reports the following operating results for the month of August: sales $315,000…

A: Net Income - Net income is the entire amount of money earned by a person or corporation over a…

Q: a single product and has the following cost structure: Fixed Costs Production Rebel Co. manufactures…

A: Ending inventory is the amount of inventory that an entity has in hand at the end of the period. It…

Q: State which performance perspective each strategic objective should fall under, and suggest at least…

A:

Q: On October 31, the end of the first month of operations, Maryville Equi Maryville Equipment Company…

A: The income statement records the revenue and expenses of the current period. The absorption costing…

Q: The accounting team at Novak is considering its options for reporting performance at the end of this…

A: Using variable costing, the variable manufacturing Costs are included in the product cost. Using…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.