Selling price per unit Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: ts two most recent n beginning inventory O 3,000 duced during the year 12,000 10,000 old during the year 9,000 10,000 ending inventory 3.000 3.000 $91 $13 $7 $3 $480,000 ale selling and administrative expense per unit sold $ 6 ed selling and administrative expense per year $ 84,000 Year 1 Year 2
Selling price per unit Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: ts two most recent n beginning inventory O 3,000 duced during the year 12,000 10,000 old during the year 9,000 10,000 ending inventory 3.000 3.000 $91 $13 $7 $3 $480,000 ale selling and administrative expense per unit sold $ 6 ed selling and administrative expense per year $ 84,000 Year 1 Year 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Moskowitz Corporation has provided the following data for its two most recent years of operation:
Selling price per unit
$91
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
Direct labor
$13
$7
Variable manufacturing overhead
Fixed manufacturing overhead per year
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 6
Fixed selling and administrative expense per year $ 84,000
Year 1 Year 2
3,000
Units in beginning inventory o
Units produced during the year 12,000 10,000
Units sold during the year 9,000 10,000
Units in ending inventory 3,000 3,000
Which of the following statements is true for Year 2?
$3
$480,000
The amount of fixed manufacturing overhead deferred in inventories is $24,000
O The amount of fixed manufacturing overhead deferred in inventories is $686.000
The amount of fixed manufacturing overhead released from inventories is $686.000
Transcribed Image Text:Moskowitz Corporation has provided the following data for its two most recent years of operation:
Selling price per unit
891
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead per year
Selling and administrative expenses:
$13
$7
$3
Units in beginning inventory O
3,000
Units produced during the year 12,000 10,000
Units sold during the year
9,000 10,000
Units in ending inventory
3,000 3,000
Which of the following statements is true for Year 2?
$480,000
Variable selling and administrative expense per unit sold $ 6
Fixed selling and administrative expense per year
Year 1 Year 2
$ 84,000
The amount of fixed manufacturing overhead deferred in inventories is $24,000
The amount of fixed manufacturing overhead deferred in inventories is $686,000
O The amount of fixed manufacturing overhead released from inventories is $686,000
O The amount of fixed manufacturing overhead released from inventories is $24,000
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