Variable costs per unit: Manufacturing: Direct materials Direct labor $ 29 $ 21 Variable manufacturing overhead Variable selling and administrative $5 $1 Fixed costs per year: Fixed manufacturing overhead $ 330,000 $ 150,000 Fixed selling and administrative expenses During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75.000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $64 per unit. Required: 1. Compute the company's break-even point in unit sales. 2. Assume the company uses variable costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an Income statement for Year 1, Year 2, and Year 3. 3. Assume the company uses absorption costing a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below.
Variable costs per unit: Manufacturing: Direct materials Direct labor $ 29 $ 21 Variable manufacturing overhead Variable selling and administrative $5 $1 Fixed costs per year: Fixed manufacturing overhead $ 330,000 $ 150,000 Fixed selling and administrative expenses During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75.000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company's product is $64 per unit. Required: 1. Compute the company's break-even point in unit sales. 2. Assume the company uses variable costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an Income statement for Year 1, Year 2, and Year 3. 3. Assume the company uses absorption costing a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 24BEB: Use the following information for Brief Exercises 11-23 and 11-24: Theta Company has the following...
Related questions
Question
2B
![Variable costs per unit:
Manufacturing:
Direct materials
Direct labor
$ 29
$ 21
$5
Variable manufacturing overhead
Variable selling and administrative
$1
Fixed costs per year:
Fixed manufacturing overhead
$ 330,000
Fixed selling and administrative expenses
$ 150,000
During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it
produced 75,000 units and sold 50,000 units. In Its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of
the company's product is $64 per unit.
Required:
1. Compute the company's break-even point in unit sales.
2. Assume the company uses variable costing:
a. Compute the unit product cost for Year 1, Year 2, and Year 3.
b. Prepare an Income statement for Year 1, Year 2, and Year 3.
3. Assume the company uses absorption costing:
a. Compute the unit product cost for Year 1, Year 2, and Year 3.
b. Prepare an Income statement for Year 1, Year 2, and Year 3.
Complete this question by entering your answers in the tabs below.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F64f5a7ce-a444-469c-aaaf-d6378f57c470%2F540443c9-f70e-45cd-8efd-c07655098d50%2Fimf2kun_processed.png&w=3840&q=75)
Transcribed Image Text:Variable costs per unit:
Manufacturing:
Direct materials
Direct labor
$ 29
$ 21
$5
Variable manufacturing overhead
Variable selling and administrative
$1
Fixed costs per year:
Fixed manufacturing overhead
$ 330,000
Fixed selling and administrative expenses
$ 150,000
During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it
produced 75,000 units and sold 50,000 units. In Its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of
the company's product is $64 per unit.
Required:
1. Compute the company's break-even point in unit sales.
2. Assume the company uses variable costing:
a. Compute the unit product cost for Year 1, Year 2, and Year 3.
b. Prepare an Income statement for Year 1, Year 2, and Year 3.
3. Assume the company uses absorption costing:
a. Compute the unit product cost for Year 1, Year 2, and Year 3.
b. Prepare an Income statement for Year 1, Year 2, and Year 3.
Complete this question by entering your answers in the tabs below.
![Complete this question by entering your answers in the tabs below.
Req 1
Req 2A
Req 2B
Req 3A
Req 3B
Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses variable costing.
Haas Company
Variable Costing Income Statement
Year 1
Year 2
Year 3
$4,160,000
Sales
$ 3,840,000
$3,200,000
Variable expenses:
Variable cost of goods sold
3,300,000
2,750,000
3,575,000
Variable selling and administrative
60,000
50,000
65,000
Total variable expenses
3,360,000
2,800,000
3,640,000
Contribution margin
480,000
400,000
520,000
Fixed expenses:
Fixed manufacturing overhead
330,000
330,000
330,000
Fixed selling and administrative
150,000
150,000
150,000
480,000
480,000 480,000
Net operating income (loss)
0 $ (80,000) $ 40,000
Req 3A >
$
< Req 2A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F64f5a7ce-a444-469c-aaaf-d6378f57c470%2F540443c9-f70e-45cd-8efd-c07655098d50%2Fchj94zt_processed.png&w=3840&q=75)
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req 1
Req 2A
Req 2B
Req 3A
Req 3B
Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses variable costing.
Haas Company
Variable Costing Income Statement
Year 1
Year 2
Year 3
$4,160,000
Sales
$ 3,840,000
$3,200,000
Variable expenses:
Variable cost of goods sold
3,300,000
2,750,000
3,575,000
Variable selling and administrative
60,000
50,000
65,000
Total variable expenses
3,360,000
2,800,000
3,640,000
Contribution margin
480,000
400,000
520,000
Fixed expenses:
Fixed manufacturing overhead
330,000
330,000
330,000
Fixed selling and administrative
150,000
150,000
150,000
480,000
480,000 480,000
Net operating income (loss)
0 $ (80,000) $ 40,000
Req 3A >
$
< Req 2A
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