e costs per unit: acturing: ect materials labor
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 29P: Jellison Company had the following operating data for its first two years of operations: Jellison...
Related questions
Question
![A
%
Diego Company manufactures one product that is sold for $75 per
unit in two geographic regions-the East and West regions. The
following information pertains to the company's first year of
operations in which it produced 46,000 units and sold 42,000 units.
2
W
N
Z
Variable costs per unit:
Manufacturing:
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Direct materials
Direct labor
Fixed manufacturing overhead
Fixed selling and administrative expense
11. What would have been the company's absorption costing net operating income
(loss) if it had produced and sold 42,000 units? You do not need to perform any
calculations to answer this question.
#S
The company sold 31,000 units in the East region and 11,000 units in
the West region. It determined that $200,000 of its fixed selling and
administrative expense is traceable to the West region, $150,000 is
traceable to the East region, and the remaining $38,000 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.
S
okay
3
X
$
D
4
R
C
&
IL
51
T
V
G
6
Y
B
H
7
U
N
J
$ 644,000
$ 388,000
$ 25
$ 20
you
$2
$4
8
1
M
K
O
I
11
L
0
?
?1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4119fedc-b5ba-442d-99f8-6b329401f211%2Fbb7ab545-4005-424c-a464-4c6c75eff3b0%2F3kf7ubu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A
%
Diego Company manufactures one product that is sold for $75 per
unit in two geographic regions-the East and West regions. The
following information pertains to the company's first year of
operations in which it produced 46,000 units and sold 42,000 units.
2
W
N
Z
Variable costs per unit:
Manufacturing:
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Direct materials
Direct labor
Fixed manufacturing overhead
Fixed selling and administrative expense
11. What would have been the company's absorption costing net operating income
(loss) if it had produced and sold 42,000 units? You do not need to perform any
calculations to answer this question.
#S
The company sold 31,000 units in the East region and 11,000 units in
the West region. It determined that $200,000 of its fixed selling and
administrative expense is traceable to the West region, $150,000 is
traceable to the East region, and the remaining $38,000 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.
S
okay
3
X
$
D
4
R
C
&
IL
51
T
V
G
6
Y
B
H
7
U
N
J
$ 644,000
$ 388,000
$ 25
$ 20
you
$2
$4
8
1
M
K
O
I
11
L
0
?
?1
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