In addition to the unit indirect manufacturing costs, the following data are expectedfor the company's standard and deluxe models for 2025:Eason Company manufactures wheel rims. The company produces two wheel rimmodels: standard and deluxe. For 2025, Eason's managers have decided to usethe same indirect manufacturing costs per wheel rim that they computed in 2024using activity-based costing.E (Click the icon to view the expected information.)Because of limited machine hour capacity, Eason can produce either 2,000standard rims or 2,000 deluxe rims.(Click the icon to view the 2024 indirect manufacturing costs per wheel rim.)Read the requirements.Requirement 1. If Eason's managers rely on the ABC unit cost data computed in 2024, which model will they produce? Carry each cost to the nearest cent. (lgnoreselling and administrative expenses for this calculation.)ТextUsehodel.Data TableData TableDeluxSalStandardDeluxeIndirect Manufacturing Cost Per UnitDireSales price$800.00 $940.00StandardDeluxeDireDirect materials31.0048.00АВС сosts$224.40 $719.40IndiDirect labor45.0052.00$429.00 $Single-rate costs514.80GroPrintDonePrintDone

Calculation of gross profit: Standard Deluxe Sales Price $800 $940 Direct Materials ($31)…

Eason Company manufactures wheel rims. The company produces two wheel rim models: standard and deluxe. For 2025, Eason's managers have decided to use the same indirect manufacturing costs per wheel rim that they computed in 2024 using activity-based costing. E (Click the icon to view the 2024 indirect manufacturing costs per wheel rim.) In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2025: E (Click the icon to view the expected information.) Because of limited machine hour capacity, Eason can produce either 2,000 standard rims or 2,000 deluxe rims. Read the requirements. Requirement 1. If Eason's managers rely on the ABC unit cost data computed in 2024, which model will they produce? Carry each cost to the nearest cent. (Ignore selling and administrative expenses for this calculation.) Text Use hodel. Data Table Data Table þelux Sal Standard Deluxe Indirect Manufacturing Cost Per Unit Dire Sales price $ 800.00 $ 940.00 Standard Deluxe Dire Direct materials 31.00 48.00 ABC costs 2$ 224.40 $ 719.40 Indi Direct labor 45.00 52.00 Single-rate costs 2$ 429.00 $ 514.80 Gro Print Done Print Done

Eason Company manufactures wheel rims. The company produces two wheel rim models: standard and deluxe. For 2025, Eason's managers have decided to use the same indirect manufacturing costs per wheel rim that they computed in 2024 using activity-based costing. E (Click the icon to view the 2024 indirect manufacturing costs per wheel rim.) In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2025: E (Click the icon to view the expected information.) Because of limited machine hour capacity, Eason can produce either 2,000 standard rims or 2,000 deluxe rims. Read the requirements. Requirement 1. If Eason's managers rely on the ABC unit cost data computed in 2024, which model will they produce? Carry each cost to the nearest cent. (Ignore selling and administrative expenses for this calculation.) Text Use hodel. Data Table Data Table þelux Sal Standard Deluxe Indirect Manufacturing Cost Per Unit Dire Sales price $ 800.00 $ 940.00 Standard Deluxe Dire Direct materials 31.00 48.00 ABC costs 2$ 224.40 $ 719.40 Indi Direct labor 45.00 52.00 Single-rate costs 2$ 429.00 $ 514.80 Gro Print Done Print Done

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Part f
During 2019, Dandi Inc. produced 7000 units and sold 6500 units at 5 per unit. Variable Manufacturing cost is 2 per unit and FOH per unit is 5. What would be the effect in net income if absorption costing is used instead of Variable costing?