Sales (90 units):$90,000Production costs (100 units):Direct materials$40,000Direct labor20,000Variable factory overhead 2,000Fixed factory overhead7,000 69,000Operating expenses:Variable operating expenses $8,000Fixed operating expenses 1,000 9,000The amount of contribution margin that would be reported on the variable costing income statement is

Calculation of product cost per unit: Particulars Amount Direct materials $40,000 Direct…

Sales (90 units): Production costs (100 units): $90,000 Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead Operating expenses: Variable operating expenses $8,000 7,000 69,000 Fixed operating expenses 1,000 9,000 The amount of contribution margin that would be reported on the variable costing income statement is

Sales (90 units): Production costs (100 units): $90,000 Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead Operating expenses: Variable operating expenses $8,000 7,000 69,000 Fixed operating expenses 1,000 9,000 The amount of contribution margin that would be reported on the variable costing income statement is

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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Gregorie Tool & Die reports the following information for the quarter: Sales price $ 60 Fixed costs (for the quarter) Selling and administration 47,580 Production 142,740 Variable cost (per unit) Materials 16 Labor 13 Plant supervision 6 Selling and administrative 7 Number of units (for the quarter) 23,790 units Required: Select the answer for each of the following costs. Variable cost per unit. Variable production cost per unit. Full cost per unit. Full absorption cost per unit. Prime cost per unit. Conversion cost per unit. Contribution margin per unit. Gross margin per unit.
Farrow Company reports the following annual results. Contribution Margin Income Statement Sales (200,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit $ 15.00 Annual Total $ 3,000,000 2.00 400,000 4.00 800,000 2.50 500,000 6.50 1,300,000 2.00 1.50 400,000 300,000 $ 3.00 $ 600,000 The company receives a special offer for 20,000 units at $13 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $80,000 and incremental fixed general and administrative costs of $86,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income or loss for the special…
A company provided the following information about its one and only product: Direct materal used: $45,000 Direct labour: $30,000 Fixed factory overhead: $42,000 Fixed Selling & administrative expenses: $8,000 Variable factory overhead: $28,000 Variable Selling & administrative expenses: $12,000 Selling price de unit: $12 Units produced: 10,000 The unit cost of a unit under the marginal costing approach is a. $5.00 b. $514.50 c. $516.50 d. $510,30
If direct materials are $8 per unit, direct labor is $4 per unit, variable manufacturing overhead is $6 per unit, and fixed costs are $12,000 for 6,000 units produced, then the total cost per unit under throughput costing is
Fixed manufacturing costs are $40 per unit, and variable manufacturing costs are $120 per unit. Production was 113,000 units, while sales were 108,480 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. b. Determine the difference in variable costing and absorption costing operating income.
Using the following data, determine the unit product cost under variable costing. Units produced 1,000 Direct materials $6 Direct labor $10 Fixed overhead $6,000 Variable overhead $6 Fixed selling and administrative $2,000 Variable selling and administrative $22 $24 $28 $30 $2
Farrow Company reports the following annual results. Contribution Margin Income Statement Sales (420, 00 units) Variable costs Direct materials Direct labor Overhead Per Unit $ 15.00 Annual Total $ 6, 300, 000 2.00 4.00 2.50 840, 000 1,680, 000 1,050, 000 2,730, 000 Contribution margin Fixed costs Fixed overhead 6.50 2.00 840, 000 630, 000 Fixed general and administrative 1.50 Incone $ 3.00 $ 1, 260, 000 The company receives a special offer for 42,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $168,000 and incremental fixed general and administrative costs of $181,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? ces Complete this question by entering your answers in the tabs below. Required A Required B Compute the income or…
The following variable production costs apply to goods made by Fanning Manufacturing Corporation: Item Materials Labor Variable overhead Total Required Determine the total variable production cost, assuming that Fanning makes 10,000, 20,000, or 30,000 units. Units Produced Cost per Unit $10.00 2.50 0.75 $13.25 Total variable cost 10,000 20,000 30,000
Average Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense $6.55 $3.45 $1.45 $3.80 $1.40 $0.95 $1.35 $0.85 Sales commissions Variable administrative expense If 7,300 units are sold, the variable cost per unit sold is closest to:
Under absorption costing, a company had the following unit costs when 9,000 units were produced. Direct labor $7.25 per unit Direct material $8.00 per unit Variable overhead $5.50 per unit Fixed overhead ($67,500/9,000 units) $7.50 per unit Total production cost $28.25 per unit Compute the total production cost per unit under variable costing if 30,000 units had been produced. $31.75 $28.25 $23.45 $15.25 $20.75
Additional Information: a. Sales revenue per unit will be decreased by BD 1.200 fils for sales more than 9,000 units. b. Direct material cost is a variables cost and other production overheads are fixed cost. Direct labour consists of machine operatives' wages and the total wages behave as a step C. cost: Output Up to 7,500 units Over 7,501 and up to 11,000 units Over 11,001 and up to 15,000 units Machine running costs are a semi-variable cost. There is a fixed charge of BD 5,000 plus BD 1.200 fils per unit. Total Direct Labour cost BD 4,850 BD 8,563 BD 10,484 d. Required: the budgeted machine running costs under the output of 11300 unit are:
Based on the following information, prepare a contribution margin income statement assuming the company uses variable costing. Annual production Sales price Variable production cost per unit Direct materials 50,000 units $40 per unit $10 3 Direct labor $25 per unit Manufacturing overhead Fixed production costs 12. $150,000 each year; $3 per unit at 50,000 units of production Variable selling and administrative cost $1 per unit Fixed selling and administrative cost $100,000 each year Sales: А. Var. Production В. Var Selling & Admin 50,000 1,300,000 Contribution Margin С. Fixed Expenses: Fixed Mfg Overhead 150,000 Fixed Selling & Admin 100,000 250,000 Net Income D.