SOLUTION:
1 | |||
a | Absorption costing | 20 | =3+10+4+(81000/27000) |
b | Variable costing | 17 | =3+10+4 |
2 | |||
Variable Costing Income Statement | |||
July | August | ||
Sales | 1035000 | 1395000 | |
Variable expenses: | |||
Variable cost of goods sold | 391000 | 527000 | |
Variable selling and administrative expenses | 69000 | 93000 | |
Total variable expenses | 460000 | 620000 | |
Contribution margin | 575000 | 775000 | |
Fixed expenses: | |||
Fixed manufacturing overhead | 81000 | 81000 | |
Fixed selling and administrative expenses | 169000 | 169000 | |
Total fixed expenses | 250000 | 250000 | |
Net operating income (loss) | 325000 | 525000 | |
3 | |||
Variable costing net operating income (loss) | 325000 | 525000 | |
Add (deduct) fixed manufacturing overhead deferred in (released from) inventory |
12000 | -12000 | |
Absorption costing net operating income (loss) | 337000 | 513000 |
2 Denton Company manufactures and sells a single product. Cost data for the product are given:...
Denton Company manufactures and sells a single product. Cost data for the product are given: بیا بیا بیا Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 19 $ 135,000 169,000 $ 304,000 The product sells for $45 per unit. Production and sales data for July and August, the first two months...
Denton Company manufactures and sells a single product. Cost data for the product are given Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 19 $ 108,000 169,000 $ 277,000 The product sells for $46 per unit. Production and sales data for July and August, the first two months of operations, follow....
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 4 Direct labor 12 Variable manufacturing overhead 4 Variable selling and administrative 2 Total variable cost per unit $ 22 Fixed costs per month: Fixed manufacturing overhead $ 135,000 Fixed selling and administrative 163,000 Total fixed cost per month $ 298,000 The product sells for $53 per unit. Production and sales data for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 4 Direct labor 10 Variable manufacturing overhead 4 Variable selling and administrative 2 Total variable cost per unit $ 20 Fixed costs per month: Fixed manufacturing overhead $ 108,000 Fixed selling and administrative 160,000 Total fixed cost per month $ 268,000 The product sells for $50 per unit. Production and sales data for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 3 Direct labor 10 Variable manufacturing overhead 4 Variable selling and administrative 1 Total variable cost per unit $ 18 Fixed costs per month: Fixed manufacturing overhead $ 81,000 Fixed selling and administrative 175,000 Total fixed cost per month $ 256,000 The product sells for $51 per unit. Production and sales data for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 5 Direct labor 9 Variable manufacturing overhead 2 Variable selling and administrative 2 Total variable cost per unit $ 18 Fixed costs per month: Fixed manufacturing overhead $ 72,000 Fixed selling and administrative 166,000 Total fixed cost per month $ 238,000 The product sells for $53 per unit. Production and sales data for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 21 $162,000 163,000 $325,000 The product sells for $46 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced...
Denton Company manufactures and sells a single product. Cost data for the product are given: $ 4 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 23 $ 54,000 163,000 $ 217,000 The product sells for $48 per unit. Production and sales data for July and August, the first two months of...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 4 Direct labor 10 Variable manufacturing overhead 3 Variable selling and administrative 1 Total variable cost per unit $ 18 Fixed costs per month: Fixed manufacturing overhead $ 96,000 Fixed selling and administrative 163,000 Total fixed cost per month $ 259,000 The product sells for $53 per unit. Production and sales data for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 6 Direct labor 9 Variable manufacturing overhead 2 Variable selling and administrative 2 Total variable cost per unit $ 19 Fixed costs per month: Fixed manufacturing overhead $ 60,000 Fixed selling and administrative 166,000 Total fixed cost per month $ 226,000 The product sells for $54 per unit. Production and sales data for July and August, the first...