Production volume variance when denominator level is theoretical capacity.

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Answer 1

Question

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

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Do you please solve this general accounting question?

In August, purchases of materials equaled $9,750, the beginning inventory of materials was $850, and the ending inventory of materials was $950. Payments for direct labor during the month totaled $18,570. The Overhead incurred was $15,000. Spent $5,000 on advertising during the month. Admin. costs (primarily accounting & legal services) amounted to $3,000 for the month. Revenues for August were $60,400. 1. What was the cost of materials used during August? 2. What was the prime cost for August? General Accounting

Answer 2

Question

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

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Answer 3

Question

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

Answer 6

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

Answer 7

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

Answer 8

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

Answer 9

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

Answer 10

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

Answer 11

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

Answer 12

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

Answer 13

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

Answer 14

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

Answer 15

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

Answer 16

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

Answer 17

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

Answer 18

Expert Solution & Answer

Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

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Production volume variance when denominator level is theoretical capacity.

To compute: Production volume variance when denominator level is theoretical capacity.

To compute: Production volume variance when denominator level is practical capacity.

To compute: Production volume variance when denominator level is normal capacity.

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

3. To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

To compute: Reconcile the operating income based on theoretical and practical capacity.

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Chapter 9 Solutions

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.