None Question: 77Boston, Inc., planned and actually manufactured 190,000 units of its single product in 2017,its first year of operation. Variable manufacturing cost was $20 per unit produced. Variableoperating (nonmanufacturing) cost was $9 per unit sold. Planned and actual fixedmanufacturing costs were $950,000. Planned and actual fixed operating(nonmanufacturing) costs totaled $360,000. Boston sold 130,000 units of a product at $40per unit.Boston's 2017 operating income using absorption costing isa) $420,000b) $120,000c) $480,000d) $780,000e) none of these.

Step 1: Introduction to cost accountingThe field of accounting known as cost accounting is utilized…

Answered: Question: 77 Boston, Inc., planned and…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4CMA: Bethany Company has just completed the first month of producing a new product but has not yet...

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Hamilton Inc. planned and actually manufactured 250,000 units of its single product in 2022, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (non-manufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (non-manufacturing) costs totalled $370,000. Hamilton sold 110,000 units of product at $45 per unit. Required 1. Hamilton's 2022 operating income using absorption costing is (a) $4,700,000, (b) $1,060,000, (c) $640,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations. 2. Hamilton's 2022 operating income using variable costing is (a) $4,700,000, (b) $1,060,000, (c) $640,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations. Requirement 1. Hamilton's 2022 operating income using absorption costing is (a) $1,060,000, (b) $640,000, (c) $4,700,000, (d) $(2,580,000), or (e) none of these. Show supporting calculations.…
CVP computations. Garrett Manufacturing sold 410,000 units of its product for $68 per unit in 2017.Variable cost per unit is $60, and total fixed costs are $1,640,000.1. Calculate (a) contribution margin and (b) operating income.2. Garrett’s current manufacturing process is labor intensive. Kate Schoenen, Garrett’s production manager,has proposed investing in state-of-the-art manufacturing equipment, which will increase the annualfixed costs to $5,330,000. The variable costs are expected to decrease to $54 per unit. Garrett expectsto maintain the same sales volume and selling price next year. How would acceptance of Schoenen’sproposal affect your answers to (a) and (b) in requirement 1?3. Should Garrett accept Schoenen’s proposal? Explain.
Kairos, Inc. produces three products namely, Product X, Product Y, and Product Z. The following data from 2022 are provided. Determine the product mix that would maximize the 215,000 limited machine hours available in 2023. A. X – 55,000 units; Y – 35,000 units; Z – 30,000 units B. X – 60,000 units; Y – 35,000 units; Z – 30,000 units C. X – 60,000 units; Y – 30,000 units; Z – 35,000 units D. X – 50,000 units; Y – 35,000 units; Z – 30,000 units
Current Attempt in Progress Lily Company uses a standard cost accounting system. In 2022, the company produced 27,600 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 50,300 direct labor hours. During the year, 130,200 pounds of raw materials were purchased at $0.90 per pound. All materials purchased were used during the year. (a) If the materials price variance was $5,208 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Standard materials price per pound
Example 3: Wouie Corporation During the year 2020, Wouie Corporation's production was equal to its normal capacity of 1,000 units. It sold 900 units at a price of P50 per unit. The following costs were incurred during the year: Total Cost Cost per unit Direct Materials P12,000 P12 Direct Labor 10,000 10 Variable FOH 8,000 8 Fixed FOH 6,000 9. Variable Selling & Admin 4,500 Fixed Selling & Admin 3,000 3. Required: 1. Product Cost per unit under Absorption & Variable Costing. Income under Absorption & Variable Costing. Reconciliation of Absorption Income & Variable Costing Income
4. JV Company began operations on Jan. 1, 2020 and produces a single product that sells for P7 per unit. Standard capacity is 100,000 units per year. 100,000 units were produced and 80,000 units were sold in 2020. Manufacturing costs, selling and administrative expenses were as follows: Fixed Costa Variable Costs PL.50 per unit produced P1.00 per unit produced PO.50 per unit produced PO.50 per unit sold Raw materials Direct labor Factory overhead Selling & Administrative P150,000 P80,000 There were no variances from the standard variable costs. Any under or over-applied overhead is written off directly at the year-end adjustment to cost of goods sold. In presenting inventory on the balance sheet at Dec. 31, 2020, the unit cost under absorption is d. P4.50 b. P3.00 с. Р3.50 e. None of these; answer is a. P2.50 5. Refer to no. 4. What is the net income for the year under direct costing? a. P50,000 b. P80,000 c. P90,000 d. Pi20,000 e. None of these; answer is
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Q42 Mixing Company manufactured 2,709 units of its only product during 2022. The inputs for this production are as follows: 515 pounds of Material A at a cost of $2.15 per pound 430 pounds of Material H at a cost of $3.40 per pound 560 direct labor hours at $46 per hour The firm manufactured 2,775 units of the same product in 2021 with the following inputs: 630 pounds of Material A at a cost of $1.85 per pound 490 pounds of Material H at a cost of $3.15 per pound 530 direct labor hours at $44 per hour In 2022, the partial operational productivity of Material H is: Multiple Choice 6.25 units per pound. 6.30 units per pound. 5.26 units per pound. 2.29 units per pound. 6.20 units per pound.
Music Incorporated planned and manufactured 259,500 units of its single product in 2022, its first year of operations. Variable manufacturing costs were $49 per unit of production. Planned and actual fixed manufacturing costs were $619,000. Marketing and administrative costs (all fixed) were $309,500 in 2022. Music Incorporated sold 209,500 units of product in 2022 at $79 per unit. Variable costing operating income for 2022 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)
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