Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations: TE Restorative Power Unit Sales Price $180 $95 Variable Cost Percentage 70% 65% Traceable Fixed Costs $260,000 $118,000 During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales. Based on the above data, on which amounts should the performance of the two product lines be judged? O A. Restorative $1,252,000; Power $530,375 O B. Restorative $340,000; Power $169,125 OC. Restorative $1,852,000; Power $817,500 O D. Restorative $388,000; Power $231,125 O E. Restorative $680,000; Power $494,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations:
Restorative
Power
Unit Sales Price
$180
$95
Variable Cost Percentage
70%
65%
Traceable Fixed Costs
$260,000
$118,000
During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales.
Based on the above data, on which amounts should the performance of the two product lines be judged?
O A. Restorative $1,252,000; Power $530,375
B. Restorative $340,000; Power $169,125
C. Restorative $1,852,000; Power $817,500
D. Restorative $388,000; Power $231,125
E. Restorative $680,000; Power $494,500
Transcribed Image Text:Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations: Restorative Power Unit Sales Price $180 $95 Variable Cost Percentage 70% 65% Traceable Fixed Costs $260,000 $118,000 During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales. Based on the above data, on which amounts should the performance of the two product lines be judged? O A. Restorative $1,252,000; Power $530,375 B. Restorative $340,000; Power $169,125 C. Restorative $1,852,000; Power $817,500 D. Restorative $388,000; Power $231,125 E. Restorative $680,000; Power $494,500
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education