Beginning inventoryExpected sales in unitsSelling price per unitVariable manufacturing cost per unitFixed manufacturing overhead cost (total)Fixed manufacturing overhead costs per unitBased on 20,000 units20,000$15$6$60,000$3 per unit ($60,000 + 20,000 units)$2 per unit ($60,000 + 30,000 units)Based on 30,000 unitsTotal manufacturing cost per unitBased on 20,000 unitsBased on 30,000 unitsVariable selling and administrative expenses$9 per unit ($6 variable + $3 fixed)$8 per unit ($6 variable + $2 fixed)per unitFixed selling and administrative expenses$1$15,000Decision: Produce 20,000 or 30,000 units?1 compute per unit cost under full and variable costing ( both 30,000 or 20,000 units produce )2 income statement under full and variable costing ( both 30,000 or 20,000 units produce )

Name: Beginning inventoryExpected sales in unitsSelling price per unitVaria
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Description: Beginning inventoryExpected sales in unitsSelling price per unitVariable manufacturing cost per unitFixed manufacturing overhead cost (total)Fixed manufacturing overhead costs per unitBased on 20,000 units20,000$15$6$60,000$3 per unit ($60,000 + 20,

Given: To prepare the record of the per unit cost and income statement is given as,

Answered: elling price per unit ariable…

Business

Accounting

elling price per unit ariable manufacturing cost per u ixed manufacturing overhead cos ixed manufacturing overhead cos Based on 20,000 units 20

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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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Beginning inventory
Expected sales in units
Selling price per unit
Variable manufacturing cost per unit
Fixed manufacturing overhead cost (total)
Fixed manufacturing overhead costs per unit
Based on 20,000 units
20,000
$15
$6
$60,000
$3 per unit ($60,000 + 20,000 units)
$2 per unit ($60,000 + 30,000 units)
Based on 30,000 units
Total manufacturing cost per unit
Based on 20,000 units
Based on 30,000 units
Variable selling and administrative expenses
$9 per unit ($6 variable + $3 fixed)
$8 per unit ($6 variable + $2 fixed)
per unit
Fixed selling and administrative expenses
$1
$15,000
Decision: Produce 20,000 or 30,000 units?
1 compute per unit cost under full and variable costing ( both 30,000 or 20,000 units produce )
2 income statement under full and variable costing ( both 30,000 or 20,000 units produce )

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Total Amount Units Sales Variable Costs: 31,250 Per Unit $ 445,313 $ 14.25 Direct Materials $ 125,000 4.00 = Direct Labor $ 28,000 0.90 = Variable Manufacturing Overhead $ 66,250 2.12 = Sales Commissions $ 15,625 0.50 = Shipping Variable Billing Total Variable Costs $ 3,125 0.10 $ 313 0.01 $ 238,313 7.63 Contribution Margin $ 207,000 6.62 Fixed Costs: Fixed Manufacturing Overhead Advertising Sales and Admin. Salaries Fixed Billing Total Fixed Costs Net Operating Income (Loss) 40,000 16,800 87,300 10,000 154,100 $ 52,900 F. Using the budgeted contribution margin income statement in part E. above, calculate the following: a. Breakeven in units: b. Operating Leverage Multiplier: Given a sales volume increase of 8%, operating income will increase by: c. Percent: d. Dollars: #N/A #N/A #N/A #N/A
5 Vista Company reports the following information. Direct materials Direct labor Variable overhead Fixed overhead Units produced Compute its product cost per unit under absorption costing. Multiple Choice $76.00. $152.00. $171.00. $ 44 per unit 64 per unit $ 44 per unit $ 380,000 per year 20,000 units < Pr
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1 of 12 Assignment: 1 Case: 1 The Cost Sheet of a product is given as under: Direct Materials Direct Wages Factory Overheads: Fixed Variable Administrative Expenses: Selling and Distribution Overheads: Fixed Variable Total OMR 6.00 3.00 0.50 0.50 0.75 0.25 0.50 11.50 The selling price per unit is OMR 13. The above figures are for an output of 85,000 units, the capacity of the firm is 100,000 units. A foreign customer is desirous of buying 15,000 units at a price of OMR 10.50 per unit. (A) Advise the manufacturer, whether the order should be accepted. (B) What will be your advice, if the orders were from a local merchant, at the same price? (C) What would be the profits, if the local selling price falls to OMR 11 from OMR 13, after acceptance of the order from a local merchant?
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Subject:
ALL Acme Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor $172 0 9,700 9,300 400 Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $33 $75 $21 $25 $145,500 $ 10,300
vaion Company manuell ve prvous me ivivning mvmvn perwina w eULT VIDE Lumpanya m www youro vi operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, It produced 40,000 units and sold 50,000 units. The selling price of the company's product is $57 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an Income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating Income In Year 1.…