Diego Company manufactures one product that is sold for $77 per unit in two geographic regions—East and West. The following information pertains to the company’s first year of operations in which it produced 48,000 units and sold 43,000 units. Variable costs per unit: Manufacturing: Direct materials $ 27 Direct labor $ 12 Variable manufacturing overhead $ 3 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 864,000 Fixed selling and administrative expense $ 456,000 The company sold 33,000 units in the East region and 10,000 units in the West region. It determined $220,000 of its fixed selling and administrative expense is traceable to the West region, $170,000 is traceable to the East region, and the remaining $66,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. please answer all these questions: 4. What is the company’s net operating income (loss) under variable costing? net opration loss=??????/ 7. What is the difference between the variable costing and absorption costing net operating incomes (losses)?Note: Enter any losses or deductions as a negative value. Difference of Variable Costing and Absorption Costing Net Operating Income (Losses) Title of the table Variable costing net operating income (loss) ? Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing ? Absorption costing net operating income (loss) ? 10. What would have been the company’s variable costing net operating income (loss) if it had produced and sold 43,000 units? net operation loss=??? 11. What would have been the company’s absorption costing net operating income (loss) if it had produced and sold 43,000 units? net operating income=???????
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Diego Company manufactures one product that is sold for $77 per unit in two geographic regions—East and West. The following information pertains to the company’s first year of operations in which it produced 48,000 units and sold 43,000 units.
| Variable costs per unit: | |
| Manufacturing: | |
| Direct materials | $ 27 |
|---|---|
| Direct labor | $ 12 |
| Variable manufacturing |
$ 3 |
| Variable selling and administrative | $ 5 |
| Fixed costs per year: | |
| Fixed manufacturing overhead | $ 864,000 |
| Fixed selling and administrative expense | $ 456,000 |
The company sold 33,000 units in the East region and 10,000 units in the West region. It determined $220,000 of its fixed selling and administrative expense is traceable to the West region, $170,000 is traceable to the East region, and the remaining $66,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.
please answer all these questions:
4. What is the company’s net operating income (loss) under variable costing?
net opration loss=??????/
7. What is the difference between the variable costing and absorption costing net operating incomes (losses)?Note: Enter any losses or deductions as a negative value.
|
Difference of Variable Costing and Absorption Costing Net Operating Income (Losses) |
Title of the table |
|
Variable costing net operating income (loss) |
? |
|
Add: Fixed |
? |
|
Absorption costing net operating income (loss) |
? |
10. What would have been the company’s variable costing net operating income (loss) if it had produced and sold 43,000 units?
11. What would have been the company’s absorption costing net operating income (loss) if it had produced and sold 43,000 units?
net operating income=???????
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