VolumeSalesDirectMaterialsDirect LabourDirectMachineHoursVariableoverheadTotal VariableCostsContributionFixedoverheadNet ProfitStatic BudgetFlexibleActual Tuke Enterprises provides you with the following information concerning their budget andactual results.Standard Quantities and PricesSelling priceBudgeted VolumeDMDLMachineVar overheadQuantities per unitPrices per unit$2,115.001,2634.00kg$23.0010.00hrs$33.004.00Mhrs$96.004.00Mhrs$34.00$ 732,978Budgeted fixed overheadFixed overhead is allocated using budgeted machine hoursActual results are as follows:Actual Quantities and PricesQuantitiesSelling priceTotal value$ 2,889,195.75Volume sold1,301DM4,944$108,022.03DL12,620$433,108.10Machine4,996$493,988.66Var overhead5,100$166,461.39Fixed overhead$725,648.22

table compares Tuke enterprises' static, flexible,and actual budgets. It highlights variances in…

Answered: Volume Sales Direct Materials Direct…

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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Throughput costing • Treats all cost as period cost except for direct materials • Is very suitable for companies where labor and overaged are variable cost • Results in higher income than does variable costing when production exceeds sales • None of the above
5
All of the following are variable costs except for which of the following? Group of answer choices Production supervisor’s salary Sales commission based on number of sales units Direct material costs Direct labor costs
Under variable costing: a. Net operating income will always be higher than under absorption costing. b. Net operating income will tend to move up and down in response to changes in levels of production. O c.Inventory costs will be lower than under absorption costing. d. Net operating income will tend to vary inversely with production changes
When using a standard cost system what is the report that summarizes actual costs, standard costs, and the differences for the units produced called? Group of answer choices variable performance report budget performance report static report none of the above
The product costing method that includes fixed manufacturing cost in inventories costs is called Select one: Variable costing. O a. Ob. Direct costing. O c. Absorption costing. Od. Contribution margin. The strategy MOST likely to reduce the breakeven point would be to: Select one: Oa. Decrease the fixed costs and increase the contribution margin. Ob. Increase both the fixed costs and the contribution margin. on Increase the fixed costs and decrease the contribution margin. d. Decrease both the fixed costs and the contribution margin.
Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Prepare a profit variance analysis for Fournier Fixtures actual orders for 414,400 units) $ 7,873,600 for 370,000 units) $ 7,400,000 2,646,400 238,000 1,218,400 876,000 $ 4,978,800 $ 2,894,800 1,632,000 556,600 372,000 $ 2,560,600 $ 334,200 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $ 2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing…
The _________ is considered part of the cost of the product in absorption costing, but not in variable costing. Group of answer choices Variable Overhead Fixed Overhead Variable Selling & Administrative Fixed Selling and Administrative In the absorption income statement, Sales less Cost of Goods Sold is the calculation for: Group of answer choices Contribution margin Gross margin Net Income Operating Income
Contribution margin is Oa. profit Ob. the excess of sales over variable costs Oc. Oc. another term for volume in the "cost-volume-profit" analysis Od. the same as sales revenue
1. Which of the following formulas is used to calculate break-even units? 1. Fixed Costs - Unit Contribution Margin 2. Variable Costs Contribution Margin Percent 3. Variable Costs + Unit Contribution Margin 4. Fixed Costs + Contribution Margin Percent
Mastery Problem: Contribution Margin, Cost-Volume-Profit Analysis and Break-Even Point (Overview) Fixed, Variable and Mixed Costs An appreciation of cost behavior is needed in order for management to understand and predict profitability as the costs of material, labor and other operating expenses and levels of production and sales change. It's important to review the cost behavior of fixed, variable and mixed costs before contribution margins, cost-volume-profit analysis, and break-even points. 1. In the table below, Have-A-Seat Inc. has outlined many of the costs associated with producing office chairs. With respect to the production and sale of office chairs, classify each cost as: a.fixed b.mixed c.variable. a. Pressure-molded plastic for chair frames b. Pension cost: $0.50 per employee hour on the job c. Insurance premiums for inventory: $2,100 per month plus $0.01 for each dollar of inventory over $2 million d. Property taxes: $120,000 per year for…
Fixed manufacturing overhead is included in product costs under: absorptions costing variable costing optionA yes yes option B no no option C no yes option D yes no Option A Option B Option C Option D

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