In 2011, Cassen Manufacturing Co. had variable costing operating income of $86,300. Ending inventory decreased during 2011 from 42,000 units to 40,000 units. During both 2010 and 2011, fixed manufacturing overhead was $800,000 and 100,000 units were produced. Determine the absorption costing operating income for 2011.

In 2011, Cassen Manufacturing Co. had variable costing operating income of $86,300. Ending inventory decreased during 2011 from 42,000 units to 40,000 units. During both 2010 and 2011, fixed manufacturing overhead was $800,000 and 100,000 units were produced. Determine the absorption costing operating income for 2011.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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General Account - In 2011, Cassen Manufacturing Co. had variable costing operating income of $86,300. Ending inventory decreased during 2011 from 42,000 units to 40,000 units. During both 2010 and 2011, fixed manufacturing overhead was $800,000 and 100,000 units were produced. Determine the absorption costing operating income for 2011.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
Provide answer this accounting question
Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates total manufacturing overhead costs of $907,200, direct labor costs of $756,000, and direct labor hours of 21,600 for the year. (Round answer to the nearest whole percent, e.g. 25%.) Predetermined overhead rate
Account analysis method. Gower, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017. Gower, Inc., produced 75,000 units of product in 2017. Gower’s management is estimating costs for 2018 on the basis of 2017 numbers. The following additional information is available for 2018. Direct materials prices in 2018 are expected to increase by 5% compared with 2017. Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase by 10% in 2018 compared with 2017. Power rates and wage rates for supervision, materials handling, and maintenance are not expected to change from 2017 to 2018. Depreciation costs are expected to increase by 5%, and rent, property taxes, and administration costs are expected to increase by 7%. Gower expects to manufacture and sell 80,000 units in 2018.
Want accurate solution to both part
At what percentage of denominator level was the plant operating during 2017?
Please solve this MCQs At the beginning of the year, manufacturing overhead for the year was estimated to be $267,500. At the end of the year, actual direct labor-hours for the year were 22,100 hours, the actual manufacturing overhead for the year was $262,500, and manufacturing overhead for the year was overapplied by $13,750. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used to calculate the predetermined overhead rate was: 22,100 direct labor-hours. 21,000 direct labor-hours. 21,400 direct labor-hours. 19,900 direct labor-hours.
Sheridan Company's high and low level activity last year was 56000 units of product produced in May and 18000 units produced in November. Machine maintenance cost were $162,600 in May and $63,800 in November. Using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 35000 units.
ACCOUNTING
APL, Inc. began operations on January 1, 2016. The company does not generally carry Work in Process Inventories at the end of the year. Variable product costs per unit were the same for 2016, 2017 and 2018 and total $68 per unit. Total Fixed Overhead Costs are $600,000 per year. Variable Selling and Administrative Costs are $9 for each unit sold. Fixed Selling and Administrative Costs are $230,000 per year. The Selling Price is $450 per unit for all three years. Production and Sales figures (in units) for three years are below. 2016 2017 2018 Production (units) 4,000 units 5,000 units 3,000 units Sales (units) 2,000 units 2,500 units 5,000 units The company uses the FIFO method to assign cost to any units left in ending Finished Goods Inventory. TASKS: A. Prepare, in good form (to include a proper heading), two Income Statements for 2017: One using Absorption Costing and one using Variable Costing. Use the formats that I used in the class example for Chapter 6. Then, prepare a…