Dent Company incurred the following costs while producing 560 units: direct materials, $9 per unit, direct labor, $27 per unit, variable manufacturing overhead, $16 per unit, total fixer manufacturing overhead costs, $11,200, variable selling and administrative costs, $10 per unit, total fixed selling and administrative costs, $7,280. There are no beginning inventories What is the operating income using variable costing if 350 units are sold for $140 each? O A. $12,320 O B. $27,300 O C. $13,020 O D. $8,820

Dent Company incurred the following costs while producing 560 units: direct materials, $9 per unit, direct labor, $27 per unit, variable manufacturing overhead, $16 per unit, total fixer manufacturing overhead costs, $11,200, variable selling and administrative costs, $10 per unit, total fixed selling and administrative costs, $7,280. There are no beginning inventories What is the operating income using variable costing if 350 units are sold for $140 each? O A. $12,320 O B. $27,300 O C. $13,020 O D. $8,820

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

Please provide correct solution for correct answer
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 5 pounds at $9.00 per pound Direct labor: 3 hours at $14 per hour Variable overhead: 3 hours at $9 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Variable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 45.00 42.00 27.00 $ 114.00 Fixed Cost per Month $ 300,000 $ 300,000 $22.00 $ 13.00 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs: Spending variance related to shipping expenses a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct-laborers worked 65,000 hours at a…
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:
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: $ 55.00 Direct material: 5 pounds at $11.00 per pound Direct labor: 3 hours at $12 per hour Variable overhead: 3 hours at $7 per hour 36.00 21.00 Total standard variable cost per unit $112.00 The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month $ 280,000 $ 260,000 per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 20.00 $ 11.00 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs: a. Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production. b. Direct-laborers worked 63,000 hours at a rate of $13.00 per hour. c. Total variable…
A company provided the following information about its one and only product: Direct materal used: $45,000 Direct labour: $30,000 Fixed factory overhead: $42,000 Fixed Selling & administrative expenses: $8,000 Variable factory overhead: $28,000 Variable Selling & administrative expenses: $12,000 Selling price de unit: $12 Units produced: 10,000 The unit cost of a unit under the marginal costing approach is a. $5.00 b. $514.50 c. $516.50 d. $510,30
ompany XYZ produced and sold $1,000 units. The total direct materials cost was $1,000, the direct labor cost was $15,000, the manufacturing overhead cost was $5,000. The variable selling and administrative cos as $11,000 while the fixed selling and administrative expenses was $3,000. How much is the unit product cost in (S)? elect one: O a. None of the given answers O b. 35 O c21 O d. 16 O e. 32
Romeo manufacturing co has total sales at 120,000. Its direct labor cost is 15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is 18,000 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. 1. What is the total manufacturing overhead cost? 2. What is the total direct materials cost? 3. What is the total manufacturing cost?
Grainger Company produces only one product and sells that product for $110 per unit. Cost information for the product is as follows: Direct Material $14 per Unit Direct Labor $24 per Unit Variable Overhead $4 per Unit Fixed Overhead $40,200 Selling expenses are $4 per unit and are all variable. Administrative expenses of $24,000 are all fixed. Grainger produced 6,000 units; sold 4,800; and had no beginning inventory. A. Compute net income under 1. Absorption Costing i Variable Costing B. Which costing method provide higher net income? By how much? The absorption costing ✔method provided more net income by Check My Work A. Remember that absorption costing includes all costs necessary for production. Conversely, variable costing only uses the variable costs that relate directly to the production process. Keep this in mind when calculating net income under each assumption. B. Depending on the cost method chosen, there will be differences due to the way fixed costs are treated under each…
Do not give answer in image
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 5 pounds at $10.00 per pound $ 50.00 Direct labor: 3 hours at $17 per hour 51.00 Variable overhead: 3 hours at $7 per hour 21.00 Total standard variable cost per unit $ 122.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 330,000 Sales salaries and commissions $ 360,000 $ 25.00 Shipping expenses $ 16.00 The planning budget for March was based on producing and selling 24,000 units. However, during March the company actually produced and sold 30,600 units and incurred the following costs: Purchased 170,000 pounds of raw materials at a cost of $9.00 per pound. All of this material was used in production. Direct-laborers worked 68,000 hours at a rate of…
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:
Bolman Inc has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to S800,000 and the cost per unit manufactured totaled $11.00. On the basis of this information, how much cost would the firm anticipate at an activity level of 202,000 units. a $1,608,00 b $2,.200,00 c $2,214,000 d $2,222,000