20 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.

Computation of operating income by using the absorption costing method as follows:Resultant values:

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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(CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (nonmanufacturing) cost was $13 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $420,000. Miami sold 170,000 units of product at $41 per unit. Q. Miami’s 2017 operating income using absorption costing is (a) $600,000, (b) $360,000, (c) $780,000, (d) $1,020,000, or (e) none of these. Show supporting calculations.
(CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (nonmanufacturing) cost was $13 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $420,000. Miami sold 170,000 units of product at $41 per unit. Q. Miami’s 2017 operating income using variable costing is (a) $1,100,000, (b) $600,000, (c) $360,000, (d) $780,000, or (e) none of these. Show supporting calculations.
A 121.
Boston, Inc., planned and actually manufactured 200,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $11 per unit sold. Planned and actual fixed manufacturing costs were $1,000,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $370,000. Boston sold 140,000 units of product at $46 per unit. Read the requirements LOADING... . Requirement 1. Boston's 2017 operating income using absorption costing is (a) $1,030,000, (b) $730,000, (c) $1,100,000, (d) $1,400,000, or (e) none of these. Show supporting calculations. Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.)…
Absorption and variable costing. (CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (nonmanufacturing) cost was $13 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $420,000. Miami sold 170,000 units of product at $41 per unit.
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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.
Absorption and variable costing. (CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its rst year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (nonmanufacturing) cost was $13 per unit sold. Planned and actual xed manufacturing costs were $750,000. Planned and actual xed operating (nonmanufacturing) costs totaled $420,000. Miami sold 170,000 units of product at $41 per unit.
Jane Company started its operations at the beginning of 2016. The production and sales data of for the year 2016 wvere as follows: Variable costs per unit: • Direct materials: $20 • Direct labor: $10 • Variable manufacturing overhead: $4 Variable selling and administrative expenses: $8 Fixed costs per year: • Fixed manufacturing overhead: $180,000 • Fixed selling and administrative expenses: $600,000 During the year 2016, Jane Company manufactured 30,000 units out of which 22.000 units were sold. What is the cost of goods sold using absorption costing? (DO NOT USE COMMAS OR ANY SYMBOLS)
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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

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