QUESTION 1 A company manufactures and sells a single product. Budgeted data per unit of the product is: (20 Marks) Selling Price Variable Cost* Fixed Production overhead R 8.50 3.70 2.90 *All variable costs are manufacturing i.e there are no non-manufacturing variable costs. The above fixed production overhead absorption rate is based on budgeted production of 12,000 units per period. Budgeted non-production overhead (all fixed) is R16, 800 per period. Actual sales and production for two periods has been: Sales Production Period 1 11 600 units 12 000 units Period 2 12 400 units 12 300 units There was no stock at the start of Period 1. The selling price, unit variable costs and total fixed costs were as per budget in both periods. REQUIRED 1.1 Prepare statements of Comprehensive income for both periods (ie period 1 & Period 2), using absorption costing, showing the actual results for each of the two periods. (7) The company wishes to compare the results reported in (1.1) above with those that would be reported using marginal costing. Prepare the statement of comprehensive income for periods (ie period 1 & Period 2), using marginal costing, showing the actual results for each of the two periods.

QUESTION 1 A company manufactures and sells a single product. Budgeted data per unit of the product is: (20 Marks) Selling Price Variable Cost* Fixed Production overhead R 8.50 3.70 2.90 *All variable costs are manufacturing i.e there are no non-manufacturing variable costs. The above fixed production overhead absorption rate is based on budgeted production of 12,000 units per period. Budgeted non-production overhead (all fixed) is R16, 800 per period. Actual sales and production for two periods has been: Sales Production Period 1 11 600 units 12 000 units Period 2 12 400 units 12 300 units There was no stock at the start of Period 1. The selling price, unit variable costs and total fixed costs were as per budget in both periods. REQUIRED 1.1 Prepare statements of Comprehensive income for both periods (ie period 1 & Period 2), using absorption costing, showing the actual results for each of the two periods. (7) The company wishes to compare the results reported in (1.1) above with those that would be reported using marginal costing. Prepare the statement of comprehensive income for periods (ie period 1 & Period 2), using marginal costing, showing the actual results for each of the two periods.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 26BEB: Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes...

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Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Unit variable cost is 21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is 30,000 and fixed selling and administrative expense is 48,000. Required: 1. Calculate the variable cost ratio. 2. Calculate the contribution margin ratio. 3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin.
Kirchoff, Inc., manufactures a product with the following costs: Direct materials Per Unit Per Year P18.00 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses P11.90 P2.10 P1,422,000 P3.60 Fixed SG&A expenses The pricing calculations are based on budgeted production and sales P1,540,500
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3)Some cost information of the enterprise, which calculates its costs according to the Standard Cost Method, is as follows.Total Budgeted Fixed General Production Expenses = 2.000.-₺Unit Budgeted Variable General Production Expense = 1,10.-₺/brTotal Actual Direct Labor Hours = 1.500 DİSTotal Standard Direct Labor Hours = 1.300 DISRequested: Calculate the “Efficiency Difference of General Production Costs”. A. 120.-₺ positiveB. 320.-₺ negativeC. 120.-₺ negativeD. 320.-₺ positiveE. 220.-₺ negativeF. 220.-₺ positive
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units. If an amount is zero, enter "O" a. How much would absorption costing operating income differ between a plan to produce 10,000 units and a plan to produce 15,000 units? 141.75 X b. How much would variable costing operating income differ between the two production plans? 136.5 X
Breakeven analysis and target profit, taxes, what - if analysis Pome Company produces a single product: the Core. The .....$30 Materials cost. . . 7 following table provides the Core's details: Per unlt Selling price. Labor cost. . . . . . . 6 Variable overhead cost. . . . . 2 Sales commissions. . . . . . . . 10% of selling price for the upcoming year, Pome Company expects to sell 500,000 units of the Core, have total fixed costs of $ 4,500,000, and face a tax rate of 30% of income. (c) The marketing manager believes that if the Core's price is cut by $2 unit, sales will increase by 10% . Is this change desirable from a financial perspective? (d) Ignore part (c) when answering this question. The production manager believes that if Pome Company rents a new machine, total manufacturing variable costs (materials, labor, and overhead) per unit will each drop by 10%. What is the annual rent for this machine so that the income with this machine will equal the income in part (a) = $1050000
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Question:What is the net income for 2021 under variable costing?
Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $96,000. What is the contribution margin percentage? Finisk a. 47.5% O b. 52.5% O c. 70% ype here to search & 7. V 3 5. 8. W. R Y. G H. V M alt ctri alt 立
Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $175; Variable costs per unit includes: Direct material $60, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $45,000. What is the contribution margin percentage? O a. 56.6% O b. 61.1% O c. None of the given answers d. 50.9% Ое. 49.1%
i need only (iv and v) last two parts
Yu.7.Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,600 units at $225 each) Variable costs (11,600 units at $180 each) Contribution margin. Fixed costs Income 1. Compute break-even point in units. 2. Compute break-even point in sales dollars. 1. Break-even units 2. Break-even sales dollars units $ 2,610,000 2,088,000 522,000 315,000 $ 207,000