The chief executive officer of Acadia, Inc. attended a conference in which one of the sessions was devoted to variable costing. The CEO was impressed by the presentation and has askedthat the following data of Acadia, Inc. be used to prepare comparative statements using variable costing and the company's absorption costing. The data follow:Direct materials...$ 90,000Direct labor .120,000Variable factory overhead.60,000Fixed factory overhead.150,000Fixed marketing and administrative expense..180,000The factory produced 80,000 units during the period, and 70,000 units were sold for $700,000.1. Prepare an income statement using variable costing.2. Prepare an income statement using absorption costing.(Round unit costs to three decimal places.) Calculation of variable and fixed cost per unit:$ AmountUnitsRateMaterials:$90,00080,000$1.125per unitDirect labor:$120,00080,000$1.500per unitVariable factory overhead:$60,00080,000$0.750per unitFixed overhead:$150,00080,000$1.875per unitAcadia, Inc.Statement of Income-Variable CostingSalesVariable cost of goods sold:MaterialsDirect laborVariable overheadManufacturing marginFixed costs:Fixed overheadFixed marketing and administrative expenseNet incomeAcadia, Inc.Statement of Income-Absorption CostingSalesCost of goods sold:MaterialsDirect laborVariable overheadFixed overheadGross margin on salesLess: Fixed marketing and administrative expenseNet incomeIIII I| I| II

Variable Costing is costing in which entire fixed cost is taken irrespective of whether the units…

Answered: irect materials... irect labor...…

Business

Accounting

irect materials... irect labor... ariable factory ov xed factory overh ixed marketing an D0 units were s

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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! Required information Use the following information for the Exercises below. (Algo) 1 [The following information applies to the questions displayed below.] The first production department in a process manufacturing system reports the following unit data. Beginning work in process inventory Units started and completed Units completed and transferred out Ending work in process inventory 33,600 units 50, 400 units 84,000 units 17,700 units Exercise 16-4 (Algo) Weighted average: Computing equivalent units LO P1 Prepare the production department's equivalent units of production for direct materials under each of the following three separate assumptions using the weighted average method for process costing. Equivalent Units of Production (EUP)-Weighted Average Method All direct materials are added to products when processing begins. \table [[Units,, Direct Materials], [, \table[[Percent], [Complete]], EUP ],[,,,), [...]]
MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead to products using machine-hours. Last year, the company produced 8,000 units of M3100, 17,500 units of M4100, and 10,000 units of M6100 and had the following revenues and costs: Sales revenue Direct costs Direct materials Direct labor Variable overhead Setting up machines Processing sales orders Warehousing Operating machines Shipping Contribution margin Plant administration Gross profit MTI Activity Setting up machines Processing sales orders Warehousing Operating machines. Income Statement M3100 $ 9,400,000 3,300,000 610,000 M4100 $ 15,700,000 Cost Driver Production runs 4, 800, 800 860, 000 M6100 $ 14,200,000 Sales orders received Units held in inventory Machine-hours 3,100,000 1,730, 000 MTI's controller has heard about activity-based costing and puts together an employee team to recommend cost allocation bases. The employee team recommends the following. M3100 9 170 90 6, 200 Total…
Salt on a McDonald’s Big Mac a. Direct Material b. Direct labor c. Overhead d. Period
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keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false E Print Item Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): Standard Standard Standard %3D Quantity Price Cost Direct materials 3 pounds $4.50 per pound $13.50 Direct labor 2.00 hours 12.00 per hour 24.00 Total cost $37.50 Sitka Industries made 3,100 ladders in July and used 9,200 pounds of material to make these units. Sitka Industries bought 15,600 pounds of material in the curr period. There was a $300 unfavorable direct materials price variance. Enter all amounts as positive numbers. A. How much in total did Sitka pay for the 15,600 pounds? Amount paid B. What is the direct materials quantity variance? Direct materials quantity variance $ C. What is the total direct materials cost variance? Total direct materials cost variance $ D. What if 9,800 pounds were used to make these…
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YKPBNO412 Corp., manufactures and sells two products: Product TOTEMO and Product SUGOI. YKPBNO412 has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: (ID#60553) Activity Cost Pools Labor-related Production orders Order size Multiple Choice O O $535,150 $914,020 $467,602 Activity Measures DLHS orders MHS $1,038,880 Estimated Overhead Cost $ 132,400 62,430 976,450 $1,171,280 (Baruch College Exam) Q) What is YKPBNO412's total overhead applied to Product SUGOI under activity-based costing? (choose the closest answer) (Round your intermediate calculations to 2 decimal places.) Product TOTEMO 1,800 1,000 3,700 Expected Activity Product SUGOI 900 600 3,400 Total 2,700 1,600 7,100 HE
Compute the indirect manufacturing costs allocated to each product using activity based costing.
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Subject: accounting
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