ts per unit: _ng: cerials Dour manufacturing overhead lling and administrative per year: acturing overhead ng and administrative expense es 41 H 12 5 8 307,000 89,600 r, the company produced 30,700 units and sold 22.400 units. The selling price o
ts per unit: _ng: cerials Dour manufacturing overhead lling and administrative per year: acturing overhead ng and administrative expense es 41 H 12 5 8 307,000 89,600 r, the company produced 30,700 units and sold 22.400 units. The selling price o
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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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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![Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of
operations:
Variable costs per unit:
Manufacturing:
Direct materials.
Direct labour
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expense
$
Unit product cost
41
12
5
8
307,000
89,600
During the year, the company produced 30,700 units and sold 22,400 units. The selling price of the company's product is $87 per unit.
Required:
1. Assume that the company uses absorption costing.
a. Compute the unit product cost.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5735df9c-3180-4e5e-83e6-bd586b8ad553%2Fc9ee7b90-cc08-4ac4-9220-5bdd9480fd9b%2Flkrj1k_processed.png&w=3840&q=75)
Transcribed Image Text:Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of
operations:
Variable costs per unit:
Manufacturing:
Direct materials.
Direct labour
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expense
$
Unit product cost
41
12
5
8
307,000
89,600
During the year, the company produced 30,700 units and sold 22,400 units. The selling price of the company's product is $87 per unit.
Required:
1. Assume that the company uses absorption costing.
a. Compute the unit product cost.
![b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.)
Cost of goods sold:
2. Assume that the company uses variable costing.
a. Compute the unit product cost.
Unit product cost
Absorption Costing Income Statement
b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.)
Variable Costing Income Statement
Variable expenses:
Variable cost of goods sold:
Fixed expenses:
Variable cost of goods sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5735df9c-3180-4e5e-83e6-bd586b8ad553%2Fc9ee7b90-cc08-4ac4-9220-5bdd9480fd9b%2F0su6sar_processed.jpeg&w=3840&q=75)
Transcribed Image Text:b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.)
Cost of goods sold:
2. Assume that the company uses variable costing.
a. Compute the unit product cost.
Unit product cost
Absorption Costing Income Statement
b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.)
Variable Costing Income Statement
Variable expenses:
Variable cost of goods sold:
Fixed expenses:
Variable cost of goods sold
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