Friday Night, Inc. manufactures high-quality 5-liter boxes of wine which It sells for $14 per box. Below is some information related to Friday Night's capacity and budgeted foedmarufacturing costs for 2021;Denominator Level CapacityConceptDays of Hours ofFixed Manufacturing Production ProductionBoxes perOverhead per Period per Perlodper DayHourTheoretical capacityPractical capacityNormal capacityMaster budget capacity$2,500,000$2.500.000$2,500.000$2.500,00022300362310310310162501751616200Production during 2021 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/21. Actual varlable manufacturing costs were $1,762,200 (there are novarlable cost variances). Actual foed manufacturing overhead costs were $2.500.000. Fixed manufacturing overhead cost variances are written off to cost of goods sold in theperiod in which they occur. What is gross margin under practical capacity? Hint: don't forget the production-volume variance$9,457,700$9.430.250$9,444,800$9452.300

practical capacity = 310 x 16 x 175 = 868,000 boxes of wine per year fixed overhead costs…

Friday Night, Inc. manufactures high-quality 5-liter boNES of wine which it sells for $14 per box. Below is some information related to Friday Night's capacity and budgeted manufacturing costs for 2021: Days of Hours of Denominator Level Capacity Concept Fixed Manufacturing Production ProductionBoxes per Overhead per Period per Perlod per Day Hour Theoretical capacity Practical capacity Normal capacity Master budget capacity $2,500,000 $2.500.000 $2,500.000 $2.500,000 362 310 300 250 22 16 175 200 310 16 310 16 Production during 2021 was 990,000 boxes of wine, with 15,000 remaining in ending Inventory at 12/31/21. Actual variable manufacturing costs were $1,762,200 (there are no varlable cost variances). Actual fed manufacturing overhead conts were $2.500.000. Fied manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. What is gross margin under practical capacity? Hint: don't forget the production-volume variance O $9.457,700 $9.430,250 $9,444,000 $9,452,300 O000

Friday Night, Inc. manufactures high-quality 5-liter boNES of wine which it sells for $14 per box. Below is some information related to Friday Night's capacity and budgeted manufacturing costs for 2021: Days of Hours of Denominator Level Capacity Concept Fixed Manufacturing Production ProductionBoxes per Overhead per Period per Perlod per Day Hour Theoretical capacity Practical capacity Normal capacity Master budget capacity $2,500,000 $2.500.000 $2,500.000 $2.500,000 362 310 300 250 22 16 175 200 310 16 310 16 Production during 2021 was 990,000 boxes of wine, with 15,000 remaining in ending Inventory at 12/31/21. Actual variable manufacturing costs were $1,762,200 (there are no varlable cost variances). Actual fed manufacturing overhead conts were $2.500.000. Fied manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. What is gross margin under practical capacity? Hint: don't forget the production-volume variance O $9.457,700 $9.430,250 $9,444,000 $9,452,300 O000

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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