Solution 1a:
Computation of Unit Product Cost - Absorption Costing | |
Particulars | Per unit |
Unit Product Cost: | |
Direct material | $4.00 |
Direct Labor | $10.00 |
Variable manufacturing overhead | $3.00 |
Fixed
manufacturing overhead ($84,000 / 21000) |
$4.00 |
Unit Product Cost | $21.00 |
solution 1b:
Computation of Unit Product Cost - Variable Costing | |
Particulars | Per unit |
Unit Product Cost: | |
Direct material | $4.00 |
Direct Labor | $10.00 |
Variable manufacturing overhead | $3.00 |
Unit product cost | $17.00 |
solution 2:
Denton company | ||
Variable Costing income statement For the month of July and August |
||
Particulars | July | August |
Sales | $782,000.00 | $1,150,000.00 |
Variable Cost: | ||
Direct material | $68,000.00 | $100,000.00 |
Direct Labor | $170,000.00 | $250,000.00 |
Variable manufacturing overhead | $51,000.00 | $75,000.00 |
Variable selling and administrative | $17,000.00 | $25,000.00 |
Total Variable Costs | $306,000.00 | $450,000.00 |
Contribution | $476,000.00 | $700,000.00 |
Fixed Costs: | ||
Fixed Manufacturing Overhead | $84,000.00 | $84,000.00 |
Fixed Selling & Administrative Expenses | $169,000.00 | $169,000.00 |
Total Fixed Costs | $253,000.00 | $253,000.00 |
Net Income | $223,000.00 | $447,000.00 |
Solution 3:
Reconciliation of Net Operating income under absorption costing & Variable Costing | ||
Particulars | July | August |
Variable costing net operating income (loss) | $223,000.00 | $447,000.00 |
Add : Fixed manufacturing overhead deferred in inventory ($4*4000) | $16,000.00 | $0.00 |
Less: Fixed manufacturing overhead released in inventory | $0.00 | $16,000.00 |
Net Operating Income - Absorption Costing | $239,000.00 | $431,000.00 |
Denton Company manufactures and sells a single product. Cost data for the product are given: varirect...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 5 Direct labor 11 Variable manufacturing overhead 4 Variable selling and administrative 1 Total variable cost per unit $ 21 Fixed costs per month: Fixed manufacturing overhead $ 90,000 Fixed selling and administrative 169,000 Total fixed cost per month $ 259,000 The product sells for $54 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 11 Variable manufacturing overhead 3 Variable selling and administrative 3 Total variable cost per unit $ 22 Fixed costs per month: Fixed manufacturing overhead $ 105,000 Fixed selling and administrative 160,000 Total fixed cost per month $ 265,000 The product sells for $48 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 11 Variable manufacturing overhead 3 Variable selling and administrative 1 Total variable cost per unit $ 19 Fixed costs per month: Fixed manufacturing overhead $ 90,000 Fixed selling and administrative 163,000 Total fixed cost per month $ 253,000 The product sells for $55 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 below: Variable costs per unit: Direct materials $ 5 Direct labor 10 Variable manufacturing overhead 3 Variable selling and administrative 3 Total variable cost per unit $ 21 Fixed costs per month: Fixed manufacturing overhead $ 120,000 Fixed selling and administrative 175,000 Total fixed cost per month $ 295,000 The product sells for $48 per unit. Production and sales data for July and August,...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 6 Direct labor 10 Variable manufacturing overhead 4 Variable selling and administrative 2 Total variable cost per unit $ 22 Fixed costs per month: Fixed manufacturing overhead $ 105,000 Fixed selling and administrative 163,000 Total fixed cost per month $ 268,000 The product sells for $49 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: $ 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...
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 2 Total variable cost per unit $ 19 Fixed costs per month: Fixed manufacturing overhead $ 54,000 Fixed selling and administrative 175,000 Total fixed cost per month $ 229,000 The product sells for $54 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 below: Variable costs per unit: Direct materials $7 Direct labor 10 Variable manufacturing overhead 5 Variable selling and administrative 3 Total variable cost per unit $25 Fixed costs per month: Fixed manufacturing overhead $ 315,000 Fixed selling and administrative 245,000 Total fixed cost per month $ 560,000 The product sells for $60 per unit. Production and sales data for July and August, the first two...