Phoenix Manufacturing reported $125,000 of income using variable costing for the year. The company had no beginning inventory, planned and actual production of 60,000 units, and sales of 55,000 units. Standard variable manufacturing costs were $18 per unit, and total budgeted fixed manufacturing overhead was $180,000. Assuming no variances, calculate the income under absorption costing. a. $135,000 b. $125,000 c. $142,000 d. $168,000 e. $156,000

Phoenix Manufacturing reported $125,000 of income using variable costing for the year. The company had no beginning inventory, planned and actual production of 60,000 units, and sales of 55,000 units. Standard variable manufacturing costs were $18 per unit, and total budgeted fixed manufacturing overhead was $180,000. Assuming no variances, calculate the income under absorption costing. a. $135,000 b. $125,000 c. $142,000 d. $168,000 e. $156,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 15E: Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
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