The total fixed costs charged against the current year’s operations assuming that NUBD uses absorption costing is The following information is available for NUBD Corporation's new product line:Selling price per unitVariable manufacturing cost per unit of productionTotal annual fixed manufacturing costsVariable administrative costs per unit of productionTotal annual fixed selling and administrative expensesP 158.25,0003.15,000

Solution:- Under absorption costing, The following costs are consider for calculation of income as…

Answered: The total fixed costs charged against…

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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• The unit cost… a. is the total conversion costs divided by the number of units produced. b. is the total product costs divided by the number of units produced. c. product plus period cost d. is the total prime costs divided by the number of units produced. e. includes period costs.
All variable costs are listed ________ on a contribution margin income statement. Question 35 options: below the gross profit line below the contribution margin line above the gross profit line above the contribution margin line
Which of the following line items will not be found in the absorption costing income statement? Group of answer choices Variable manufacturing and non-manufacturing costs Contribution margin Gross profit Fixed manufacturing costs
Explain the impact of an increase in the level of activity (or cost driver) on (a) total fixed cost and (b) fixed cost per unit of activity.
Which of the following is not a method of cost absorption? (a) Percentage of direct material cost (b) Machine hour rate (c) Labour hour rate (d) Repeated distribution method
Direct labour cost is an element of_________ a. All of the given options b. Prime cost c. Conversion cost d. Factory overhead
Question: In cost accounting, what is the primary purpose of calculating the predetermined overhead rate? A) To allocate indirect costs to products based on a predetermined formula.B) To determine the actual overhead costs incurred during a specific production period.C) To calculate variable costs associated with each unit of production.D) To assess fixed costs that remain constant regardless of production levels.
Which of the following costs is most likely to be classifled as a fixed cost? Multiple Cholce Direct materials Sales commissions Direct labor Property taxes Shipping costs
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year 60 24 24 $ 528,000 22 8 $4 $ 105,000 11 la. Assume the company uses absorption costing. Determine its product cost per unit. Absorption costing Per unit product cost using:
Under variable costing, which of the following are costs that can be inventoried Select one: O O a. variable manufacturing overhead b. fixed selling and administrative expense c. variable selling and administrative expense d. fixed manufacturing overhead
Use the cost per equivalent unit to assign costs to the work completed during the period.
Over extended periods of time, the net income figures reported under absorption costing will be: a. Equal to net income reported under variable costing b. Higher or lower because no generalization can be made c. Less than net income reported under variable costing d. Greater than net income reported under variable costing

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