Answered: Standard per item (£) Actual per item…

Standard per item (£) Actual per item (£) Selling price 20 22 Material 6 8 Labour 3 4 Variable overhead 2 4 It budgeted to sell 1,000 units but actually sold 100 less than this.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a…

A: Formula: Break even sales dollars = Fixed cost / contribution margin ratio

Q: 12 Flanders Ltd makes travel gadgets. The standard cost of making a travel gadget is as follows…

A: Variance analysis is a tool which is used to identify the difference in cost and revenue and the…

Q: Which of the following costs are NOT variable? Cost 2. 1. $100,000 $300,000 3. 10,000 Units 4.…

A: The correct answer is: (C) only 3 i.e the cost which remains the same at both 10,000 units and…

Q: Solve for the missing amounts for the following separate cases. Case 1 2 3 4 Sales price per unit $…

A: Break Even Point in Units = Total Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)

Q: REQUIRED Calculate the following from the information provided below: 3.1.1 Break-even value using…

A: The break-even sales are calculated as the fixed costs divided by the contribution margin ratio. The…

Q: What will be Abado’s breakeven point in sales dollars ?

A: Break even refers to the situation of no profit and no loss. At the point of break even, business is…

Q: The following pertained to Lomi Inc.: Product Sales Price Unit Variable Cost…

A: Solution:- Calculation of break-even point in units and Break-even in pesos as follows under:-…

Q: e. OMR10 Company XYZ produced and sold 5,000 units. The selling price per unit was OMR7. The…

A: Definition: Cost-volume profit analysis: CVP analysis is a tool of cost accounting that measures…

Q: Compute the breakeven revenue. Revenue Variable costs Contribution margin $40,000 30,000 10,000

A: Solution... Contribution margin ratio = Contribution margin / sales revenue

Q: Stairway Company sells a single product. The company's most recent income statement is given below:…

A: Variable costs change directly with the change in the number of units sold. So variable cost is…

Q: Given the following data: Fixed overheads Selling price Variable cost per unit £40 000 Select one:…

A: Break-even units = Fixed overheads / Contribution margin per unit

Q: Webb pic sells one product for which data for a budgeted period are given below: £ Selling price per…

A: The answer is option (b). [i.e,5,333 units] Refer step 2 for explanation

Q: Shalom Company provided the following data: Selling price 80 per unit Fixed production cost Fixed…

A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…

Q: a) What is the gross margin now? (b) What is the net operating income now? (c) What…

A: Gross margin is the difference between sales and the cost of goods sold. Net operating income is…

Q: 2. Morrill Company produces two different types of gauges: a density gauge and a thickness gauge.…

A: Relevant cost- Relevant costs are those that can be avoided but must be incurred as a result of the…

Q: A product is sold at $80 per unit, the variable expense per unit is $20, and total fixed expenses…

A: Break-even sales in dollars refer to the level of sales at which a business covers all its costs and…

Q: Variable costs 600 300 Contribution 400 200 Fixed costs 200 200 Profit 100…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

Q: The table below shows monthly data collected on production costs and on the number of units produced…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: A company has the following information for one of its products: Standard per item (£) Actual…

A: Sales volume variance: It implies to a change or variation in the budgeted quantity of product…

Q: TB MC Qu. 18-93 (Static) Use the following information... Use the following information to determine…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: Assume that sales are predicted to be $26,250, the expected contribution margin is $10,500, and a…

A: Breakeven Sales Revenue It is that volume of sales that are required to meet the total cost.…

Q: Calculate the following: a. Composite break-even point in units and in pesos b. Allocated CBEP in…

A: Contribution means the difference between the selling price and variable cost . Fixed cost when…

Q: Assume a company sells a given product for $12 per unit. How many units must be sold to break even…

A: Total variable cost per unit = $3.5 + $0.5 = $4 Contribution per unit= Selling price per unit -…

Q: At a price of P12 the estimated monthly sales of a product is 10,000 units. Variable costs are P7…

A: Solution: Contribution margin per unit = Selling price - Variable cost = 12-7 = P5 per unit Break…

Q: A producer of pens has received a forecast of 25,000. Fixed Cost = $30,000 and Total Variable Cost =…

A: Note: Answer should be in $ and not "P", as the question has values in $. Given: When demand “D” =…

Q: Tucker makes and sells three products as follows: T K R £ £ £ Selling price 800…

A: Tucker makes and sells three products - T, K, and R. T K R £ £ £ Selling…

Q: Company X produced and sold 2,000. At this level, total variable costs were $22,000, the selling…

A: Contribution margin ratio is a ratio which defines the amount of total revenue left after deducting…

Q: 4 Rundle Company reported the following data regarding the product it sells: Sales price…

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Q: A product has a prime cost of £15, variable overhead of £5 per unit and fixed overheads of £8 per…

A: Prime cost is the cost that includes the cost incurred on the direct material and direct labor. This…

Q: Zhao Company has fixed costs of $429,000. Its single product sells for $187 per unit, and variable…

A: Break Even Point (BEP) :— It is the point of production where total cost is equal to total revenue.…

Q: Use the following information to determine the break-even point in sales dollars: Unit sales 49,200…

A: Break-even point in the sales dollars states the level of production or the aggregate units…

Q: XYZ Inc. sells 3 products: X, Y and Z. Budgeted Fixed Cost for next period totals P106,500. Other…

A: Contribution: It is difference of sales and marginal costs and is used to recovered the fixed cost.…

Q: Product X; total sales are 100 units, unit sales price is 1000 TL, unit variable costs are 800 TL.…

A: Break Even Point= Fixed cost/Contribution per unit Fixed cost= 120*100= 12000 Contribution per…

Q: 6. A company budgets to sells its three products A, B and C in the ratio 2:3:5 respectively,…

A: We are Provided the Following Information :A:B:C are Sold in the Ratio = 2:3:5ProductsABCSales Price…

Q: Uramilaben

A: The objective of this question is to determine the optimal production quantity of each product that…

Q: A company manufactures a single product. Below are the budgeted costs for the next financial period:…

A: Contribution margin per unit = sales -Variable production cost - Sales commission = R24 - R8.60 -…

Q: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. 3.2 Use the…

A: Break even value is the value which every business wants to earn from the product which they are…

Q: Given the following: compute the company's break-even point in dollars and the margin of safety in…

A: Break-even point: In the business, if contribution equals the fixed cost that is called the…

Q: Company D is planning to perform an ABC analysis for its products. An information table is given…

A: ABC analysis is an inventory control method which include categorizing of items used in production…

Q: From the following particulars, calculate Margin of safety: Fixed cost OMR.

A: Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that…

Question

A company has the following information for one of its products:

	Standard per item (£)	Actual per item (£)
Selling price	20	22
Material	6	8
Labour	3	4
Variable overhead	2	4

It budgeted to sell 1,000 units but actually sold 100 less than this.

What is the sales price variance?

A £1,800 F

B £2,000 F

C £2,000 A

D £1,800 A

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Y product; total sales quantity is 25, unit sales price is 1600 TL, unit variable expense is 1000 TL. (Total fixed expenses 120.000TL)What is the 'break-even point' of Y according to uniform production? 2310143019
12. A company has produced the following information for a product it is about to launch: Units Variable production cost per unit Fixed production costs Variable selling cost per unit Fixed selling price Administrative costs What is the life-cycle cost per unit? A. £4.81 B. £4.32 C. £5.07 D. £5.48 4000 £4.30 £5,000 A. Prime cost +60% B. Marginal cost+40% C. Average Total Costs +10% D. Net margin of 20% on selling price. £0.70 £1700 £900 7000 £3.80 £5,500 £0.60 £1800 £900 9000 £3.20 £6,000 £0.60 £1800 £900 13. A product has a prime cost of £15, variable overhead of £5 per unit and fixed overheads of £8 per unit. Which pricing policy gives the highest price?
Please help me with show all calculation thanku
6.Dalian Company provides the following information: Price per unit $20.00 Variable cost per unit $8.00 Fixed costs per month: $15,000 What is the break-even point in terms of units sold? Select one: A.1,875 B.1,250 C.1,200 D.1,150
What is the cost price variance? A. 8,000U B. 6,000F C. 9,000U D. 7,500U
Benovan Co. reports the following data: Sales (@ unit selling price of P20) Less Variable Costs Contribution Margin Less Fixed Costs Operating Profit P 840,000 546.000 P 294,000 168.000 P 126,000 Rased on the above data, the following were determined by an accounting staff: ======== Sales Breakeven Sales in Breakeven Sales in units Volume UVC VC% UCM CM% DOL pesos The manager consulted you regarding the effects of the following changes on the company's breakeven sales in units, breakeven sales in pesos, Degree of Operating Leverage (DOL) and Operating Profit. Assuming all other factors remain the same, the following independent proposals were made: 1. Increase the sales volume by 25% New Sales Volume New BES in units New BES in Pesos New Operating Profit New DOL 2. Increase the fixed costs by 10% New DOL New Operating Profit New BES in Pesos New BES in units 3. Increase the unit variable costs to P14 New Operating Profit New DOL New BES in Pesos New BES in units Based on the three…
Ef 457.
Calculate the following from the information provided below: 3.1.1 Break-even value using the marginal income ratio 3.1.2 Margin of safety (in units) 3.1.3 Break-even quantity if a sales commission of 20% is introduced. INFORMATION Ascot (Pty) Ltd manufactures a single product and the following budget has been produced by the management accountant: Sales at R250 per unit R1 000 000 Variable costs R600 000 Fixed manufacturing, administrative and marketing costs R250 000 All the units produced are expected to be sold
q3
9. Sales total $200,000 when variable costs total $150,000 and fixed costs total $30,000. The breakeven point in sales dollars is: a. $200,000 b. $40,000 c. $30,000 d. $50,000 e. $120,000 f. $20,000 g. $37,500 h. None of the above
West Liberty Inc's Division C has the following: Sales.. Variable cost of goods sold .. $210,000 Fixed costs of .. Variable Selling Expenses of.. $42,000 Should this division be discontinued? .. $300,000 .. $50,000
A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.