Easy Company manufactures one product that is sold for $ 80 per unit. The following information...
Easy Company manufactures one product that is sold for $ 80 per
unit.
The following information pertains to the company’s first year of
operation in which it produced 40,000 units (capacity was 50,000
units) and sold 35,000 units.
Manufacturing:
Direct materials $960,000
Direct labor $560,000
Variable manufacturing overhead $80,000
Fixed manufacturing overhead $800,000
Selling, General and Administrative:
Variable selling and administrative $140,000
Fixed selling, general and administrative $420,000
The company operates in Italy. (So direct labor is considered fixed)
Required:
(1) What is the product unit cost under variable costing?
(2) What is the product unit cost under absorption costing?
(3) What is the product unit cost under absorption if the
supplementalrate method is used (pull approach to costing)?
-
(4) What is the total contribution margin?
-
(5) What is the total gross margin under absorption costing?
-
(6) Does the total gross margin change if the pull approach to costing is
used?
-
(7) Why?
Homework Answers
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Easy Company manufactures one product that is sold for $ 80 per
unit.
The following information...
Please help me to solve this exercise. I m very very appreciate if you could provide...
Please help me to solve this exercise. I m very very
appreciate if you could provide the solution in details so that I
could understand how the numbers come from.
Many thanks
Anna
Easy Company manufactures one product that is sold for $ 80 per unit. The following information pertains to the company's first year of operation in which it produced 40,000 units (capacity was 50,000 units) and sold 35,000 units Manufacturing: Direct materials Direct labor Variable manufacturing overhead Fixed...
A Company manufactures one product that is sold for $79 per unit. The following information pertains to the company...
A Company manufactures one product that is sold for $79 per unit. The following information pertains to the company's first year of operations in which I produced 50,000 units and sold 45,000 units. Variable costs per unit: Manufacturing Direct materials $ 29 Direct labour 16 Variable manufacturing overhead 2 Variable selling and administrative 4 Fixed costs per year: Fixed manufacturing overhead 800,000 Fixed selling and administrative expenses $ 516,000 1. What is the company's total contribution margin under variable costing?...
Diego Company manufactures one product that is sold for $80 per unit in two geographic regions—the...
Diego Company manufactures one product that is sold for $80 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 51,000 units and sold 47,000 units. Variable costs per unit: Manufacturing: Direct materials $ 30 Direct labor $ 18 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 816,000 ...
Diego Company manufactures one product that is sold for S77 per unit in two geographic regions-the...
Diego Company manufactures one product that is sold for S77 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: 27 10 1,298,000 Fixed manufacturing overhead Fixed selling and administrative expenses $662,000 The company sold 41,000 units in the...
Diego Company manufactures one product that is sold for $73 per unit in two geographic regions--the...
Diego Company manufactures one product that is sold for $73 per unit in two geographic regions--the East and West regions. The following information pertains to the company's first year of operations in which it produced 56,000 units and sold 51,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 784,000 $ 672,000 The company sold 38,000 units in the...
Diego Company manufactures one product that is sold for $78 per unit in two geographic regions—the...
Diego Company manufactures one product that is sold for $78 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 49,000 units and sold 44,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 14 Variable manufacturing overhead $ 4 Variable selling and administrative $ 6 Fixed costs per year: Fixed manufacturing overhead $ 686,000 Fixed selling and administrative expense $...
Diego Company manufactures one product that is sold for $71 per unit in two geographic regions—the...
Diego Company manufactures one product that is sold for $71 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 54,000 units and sold 49,000 units. Variable costs per unit: Manufacturing: Direct materials $ 22 Direct labor $ 12 Variable manufacturing overhead $ 3 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 864,000 Fixed selling and administrative expenses $...
Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the...
Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. Variable costs per uniti Manufacturings Direct naterials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense 21 10 2 4 $1,060,000 557,000 The company sold 36,000 units...
Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West r...
Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense $1,060,000 557.000 The company sold 36,000 units in the East region...
Diego Company manufactures one product that is sold for $78 per unit in two geographic regions—the...
Diego Company manufactures one product that is sold for $78 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 49,000 units and sold 44,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 14 Variable manufacturing overhead $ 4 Variable selling and administrative $ 6 Fixed costs per year: Fixed manufacturing overhead $ 686,000 Fixed selling and administrative expense $...
Please help me to solve this exercise. I m very very
appreciate if you could provide the solution in details so that I
could understand how the numbers come from.
Many thanks
Anna
Easy Company manufactures one product that is sold for $ 80 per unit. The following information pertains to the company's first year of operation in which it produced 40,000 units (capacity was 50,000 units) and sold 35,000 units Manufacturing: Direct materials Direct labor Variable manufacturing overhead Fixed...
A Company manufactures one product that is sold for $79 per unit. The following information pertains to the company's first year of operations in which I produced 50,000 units and sold 45,000 units. Variable costs per unit: Manufacturing Direct materials $ 29 Direct labour 16 Variable manufacturing overhead 2 Variable selling and administrative 4 Fixed costs per year: Fixed manufacturing overhead 800,000 Fixed selling and administrative expenses $ 516,000 1. What is the company's total contribution margin under variable costing?...
Diego Company manufactures one product that is sold for S77 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: 27 10 1,298,000 Fixed manufacturing overhead Fixed selling and administrative expenses $662,000 The company sold 41,000 units in the...
Diego Company manufactures one product that is sold for $73 per unit in two geographic regions--the East and West regions. The following information pertains to the company's first year of operations in which it produced 56,000 units and sold 51,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 784,000 $ 672,000 The company sold 38,000 units in the...
Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. Variable costs per uniti Manufacturings Direct naterials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense 21 10 2 4 $1,060,000 557,000 The company sold 36,000 units...
Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense $1,060,000 557.000 The company sold 36,000 units in the East region...
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