a. | Under Absorption Costing | ||
Unit product cost: | |||
Direct Material | $ 5 | ||
Direct Labor | $ 11 | ||
Variable Manufacturing overhead | $ 2 | ||
Total Variable Cost | $ 18 | ||
Fixed Manufacturing overhead ($54000/18000) | $ 3 | ||
Unit product cost | $ 21 | ||
b. | Under Variable Costing | ||
Unit product cost: | |||
Direct Material | $ 5 | ||
Direct Labor | $ 11 | ||
Variable Manufacturing overhead | $ 2 | ||
Unit product cost | $ 18 | ||
c. | Variable Costing Income Statement | ||
July | August | ||
Sales | $ 6,72,000 | $ 10,56,000 | |
Variable expenses: | |||
Less: | Variable Cost of goods sold: | $ 2,52,000 | $ 3,96,000 |
Variable selling expenses | $ 42,000 | $ 66,000 | |
Contribution margin | $ 3,78,000 | $ 5,94,000 | |
Fixed Expenses: | |||
Less: | Fixed Manufacturing overhead | $ 54,000 | $ 54,000 |
Fixed Selling and Administrative expenses | $ 1,69,000 | $ 1,69,000 | |
Net operating Income | $ 1,55,000 | $ 3,71,000 | |
July | August | ||
d. | Variable costing net operating income (loss) | $ 1,55,000 | $ 3,71,000 |
Add / (deduct) | Fixed Manufacturing overhead cost deferred in (released from) inventory under absorption costing [4000 X $3], [-4000 X $3] | 12000 | $ -12,000 |
Absorption costing net operating income (loss) | $ 1,67,000 | $ 3,59,000 |
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Saved Help Save & Exit Check Denton Company manufactures and sells a single product. Cost data...
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:
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: MENN 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 $ 18 ve $ 60,000 172,000 $ 232,000 $ 23 The product sells for $54 per unit. Production and sales data for July and August, the first two...
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
$
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: $ 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 $ 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 $ 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 $ 6 Direct labor 10 Variable manufacturing overhead 2 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...