Division Information-2023 Beginning inventory Expected sales in units Unit selling price Variable manufacturing cost per unit Fixed manufacturing overhead costs (total) Fixed manufacturing overhead costs per unit Based on 30,000 units ($240,000+30,000) Based on 40,000 units ($240,000+ 40,000) Manufacturing cost per unit Based on 30.000 units ($8 variable+ $8.00 fixed) Based on 40,000 units ($8 variable+ $6.00 fixed) Selling and administrative expenses fall foxed) 30,000 $28 $8 $240,000 $8.00 $6.00 $16.00 $14.00 $20.000
Division Information-2023 Beginning inventory Expected sales in units Unit selling price Variable manufacturing cost per unit Fixed manufacturing overhead costs (total) Fixed manufacturing overhead costs per unit Based on 30,000 units ($240,000+30,000) Based on 40,000 units ($240,000+ 40,000) Manufacturing cost per unit Based on 30.000 units ($8 variable+ $8.00 fixed) Based on 40,000 units ($8 variable+ $6.00 fixed) Selling and administrative expenses fall foxed) 30,000 $28 $8 $240,000 $8.00 $6.00 $16.00 $14.00 $20.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Do not give answer in image
Transcribed Image Text:Prepare a variable costing income statement with one column showing the results if 30,000 units are produced and one column
showing the results if 40,000 units are produced.
AyayaiDivision
Income Statement (Variable Costing)
$
30,000 Produced
147
40,000 Produced
Transcribed Image Text:Current Attempt in Progress
Ayayai is a division of Flynn, Inc. The division manufactures and sells a pump that is used in a wide variety of applications. During the
coming year, it expects to sell 30,000 units for $28 per unit. Steve Moss, division manager, is considering producing either 30,000 or
40,000 units during the period. Other information is presented in the schedule below:
Division Information-2023
Beginning inventory
Expected sales in units
Unit selling price
Variable manufacturing cost per unit
Fixed manufacturing overhead costs (total)
Fixed manufacturing overhead costs per unit
Based on 30,000 units ($240,000+30,000)
Based on 40,000 units ($240,000+ 40,000)
Manufacturing cost per unit
Based on 30,000 units ($8 variable+ $8.00 fixed)
Based on 40,000 units ($8 variable + $6.00 fixed)
Selling and administrative expenses (all fixed)
0
30,000
$28
$8
$240,000
$8.00
$6.00
$16.00
$14.00
$20,000
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