SURVEY OF ACCOUNT.(LL)-W/ACCESS>CUSTOM<
5th Edition
ISBN: 9781260222326
Author: Edmonds
Publisher: MCG CUSTOM
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Textbook Question
Chapter 11, Problem 4E
Exercise 2-4A Determining total variable cost
The following variable production costs apply to goods made by O’Brien Manufacturing Corporation:
| Item | Cost per Unit |
| Materials | $6.00 |
| Labor | 3.00 |
| Variable |
3.50 |
| Total | $12.50 |
Required
Determine the total variable production cost, assuming that O’Brien makes 4,000, 8,000, or 12,000 units.
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The following variable production costs apply to goods made by Zachary Manufacturing Corporation:
Cost per unit
$ 9.00
Item
Materials
Labor
Variable overhead
2.50
0.75
Total
$12.25
Required
Determine the total variable production cost, assuming that Zachary makes 6.000, 16,000, or 26,000 units.
Units Produced
6,000
16,000
26,000
Total variable cost
The following variable production costs apply to goods made by Zachary Manufacturing Corporation:
Item
Cost per unit
$ 6.00
Materials
Labor
Variable overhead
6.00
1. 20
Total
$13. 20
Skipped
Required
Determine the total variable production cost, assuming that Zachary makes 14,000, 24,000, or 34,000 units.
Units Produced
14,000
24,000
34,000
Total variable cost
Question 4
Achimota Ltd produces a single product and has the following financial information:
Selling Price
Cost per unit:
Direct Materials
Direct Labour
Variable Overheads
GH¢
50
15
14
4
Fixed manufacturing overheads are GH¢40,000 per month, production volume is 10,000 units
per month and sales is 9,200 units.
You are required to:
a) Calculate the cost per unit under:
i.
Absorption costing
ii. Marginal costing
b) Prepare the income statement of ABC Ltd under:
i. Absorption costing technique
ii. Marginal costing technique
c) Reconcile the profits obtained under (bi) and (bii)
d) Explain the reasons for the difference in profits in (c) above.
Chapter 11 Solutions
SURVEY OF ACCOUNT.(LL)-W/ACCESS>CUSTOM<
Ch. 11 - 1.Define fixed cost and variable cost and give an...Ch. 11 - Prob. 2QCh. 11 - 3.Define the term operating leverage and explain...Ch. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - 6.If volume is increasing, would a company benefit...Ch. 11 - Explain the risk and rewards to a company that...Ch. 11 - 9.Are companies with predominately fixed cost...Ch. 11 - 10.How is the relevant range of activity related...Ch. 11 - Which cost structure has the greater risk?...
Ch. 11 - 14.The president of Bright Corporation tells you...Ch. 11 - Prob. 12QCh. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Prob. 16QCh. 11 - Prob. 17QCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Exercise 2-4A Determining total variable cost The...Ch. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prepare an income statement using the contribution...Ch. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - Prob. 20ECh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Problem 2-19A Context-sensitive nature of cost...Ch. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 1ATCCh. 11 - Prob. 2ATCCh. 11 - Prob. 3ATCCh. 11 - Prob. 4ATCCh. 11 - Prob. 5ATC
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