Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,100
Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,100. The bicycles sell for $1,850 each. Budgeted fixed manufacturing overhead for the most recent year was $11,100,000. Planned and actual production for the year were the same.
Required:
State whether income is higher under variable or absorption costing and the amount of the difference in reported opearting income under the two methods. Treat each condition as an independent case. (Round intermediate calculations to 2 decimal places.)
Homework Answers
1) income under variable costing will be higher than absorption costing by (11,100,000/22100*3100) = 1,557,013.57
2) income under variable costing and absorption costing will be same = -3,000,000
3)income under absorption costing is higher than variable costing by (11,100,000/11150*1300) = 1,294,170.40
Add Answer to:
Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,100
Manta Ray Company manufactures diving masks with a variable cost of $27. The masks sell for...
Manta Ray Company manufactures diving masks with a variable cost of $27. The masks sell for $36. Budgeted fixed manufacturing overhead for the most recent year was $783,200. Actual production was equal to planned production. Required: State whether operating income is higher under variable or absorption costing and the amount of the difference in reported operating income under the two methods. Treat each condition as an independent case. (Do not round intermediate calculations.) 1. Production 97,900 units Sales 95,600 units...
E13-24 Direct labor variances Death Valley Bicycle Company manufactures mountain bikes. The following data for Octo-...
E13-24 Direct labor variances Death Valley Bicycle Company manufactures mountain bikes. The following data for Octo- ber of the current year are available: Quantity of direct labor used 1,100 hrs. Actual rate for direct labor $18.50 per hr. Bicycles completed in October 350 Standard direct labor per bicycle 3 hrs. Standard rate for direct labor $19.00 per hr. Planned bicycles for October 375 Determine the direct labor rate and time variances.
White Water Rafting Company manufactures kayaks, which sell for $565 each. The variable costs of production...
White Water Rafting Company manufactures kayaks, which sell for $565 each. The variable costs of production (per unit) are as follows: Direct Material $ 200 Direct labor 110 Variable manufacturing overhead 80 Budgeted fixed overhead in 20x1 was $400,000 and budgeted production was 50,000 kayaks. The year’s actual production was 50,000 units, of which 47,000 were sold. Variable selling and administrative costs were $5 per unit sold; fixed selling and administrative costs were $75,000. Required: 1. Calculate the product cost...
On-Road Wheels, Inc., manufactures a basic road bicycle. Production and sales data for the most recent...
On-Road Wheels, Inc., manufactures a basic road bicycle. Production and sales data for the most recent year are as follows (no beginning inventory): Variable production costs Fixed production costs Variable selling and administrative costs Fixed selling and administrative costs Selling price Production Sales $100 per bike $400,000 $22 per bike $550,000 $200 per bike 20,000 bikes 18,000 bikes Your answer is correct. Prepare a brief income statement using absorption costing. ON-ROAD WHEELS, INC. Income Statement (Absorption Costing) Sales 2 Less...
On-Road Wheels, Inc. manufactures a basic road bicycle. Production and sales data for the most recent...
On-Road Wheels, Inc. manufactures a basic road bicycle. Production and sales data for the most recent year are as follows (no beginning inventory): Variable production costs Fixed production costs Variable selling and administrative costs Fixed selling and administrative costs Selling price Production Sales $100 per bike $400,000 $22 per bike $550,000 $200 per bike 20,000 bikes 18,000 bikes (a) Prepare a brief income statement using absorption costing. ON-ROAD WHEELS, INC. Income Statement (Absorption Costing) Sales Less : e Textbook and...
Great Outdoze Company manufactures sleeping bags, which sell for $65.90 each. The variable costs of production...
Great Outdoze Company manufactures sleeping bags, which sell for $65.90 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $18.80 9.40 8.00 Budgeted fixed overhead in 20x1 was $169,400 and budgeted production was 22,000 sleeping bags. The year's actual production was 22,000 units, of which 19,900 were sold. Variable selling and administrative costs were $1.80 per unit sold; fixed selling and administrative costs were $23,000. Required: 1. Calculate the product cost per sleeping...
Please show all calculations. White Water Rafting Company manufactures kayaks, which sell for $565 each. The...
Please show all calculations.
White Water Rafting Company manufactures kayaks, which sell for $565 each. The variable costs of production (per unit) are as follows: Direct Material $ 200 Direct labor 110 Variable manufacturing overhead 80 Budgeted fixed overhead in 20x1 was $400,000 and budgeted production was 50,000 kayaks. The year's actual production was 50,000 units, of which 47,000 were sold. Variable selling and administrative costs were $5 per unit sold; fixed selling and administrative costs were $75,000. Required: 1....
Great Outdoze, Inc., manufactures high-quality sleeping bags, which sell for $66.00 each. The variable costs of...
Great Outdoze, Inc., manufactures high-quality sleeping bags, which sell for $66.00 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $19.50 9.90 7.60 Budgeted fixed overhead in 20x4 was $149,600 and budgeted production was 22,000 sleeping bags. The year's actual production was 22,000 units, of which 18,700 were sold. Variable selling and administrative costs were $1.30 per unit sold; fixed selling and administrative costs were $26,000. Required: 1. Calculate the product cost per...
Cycle Business manufactures and sells road and mountain bikes through a network of retail outlets in...
Cycle Business manufactures and sells road and mountain bikes through a network of retail outlets in western Canada. Below is a partial list of expense items incurred in the most recent month (November), when 1,170 bicycles were manufactured, shipped, and sold. There was no beginning or ending work in process or finished goods inventory in November: October 1,070 November 1,170 Item Units produced and sold Sales Leather used for the bicycle seats Production manager's salary Life insurance for the company...
Chenango Can Company manufactures metal cans used in the food-processing industry. A case of cans...
Chenango Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $30. The variable costs of production for one case of cans are as follows: Direct material $ 8.00 Direct labor 2.50 Variable manufacturing overhead 7.50 Total variable manufacturing cost per case $ 18.00 Variable selling and administrative costs amount to $.40 per case. Budgeted fixed manufacturing overhead is $455,000 per year, and fixed selling and administrative cost is $46,000 per year. The following...
E13-24 Direct labor variances Death Valley Bicycle Company manufactures mountain bikes. The following data for Octo- ber of the current year are available: Quantity of direct labor used 1,100 hrs. Actual rate for direct labor $18.50 per hr. Bicycles completed in October 350 Standard direct labor per bicycle 3 hrs. Standard rate for direct labor $19.00 per hr. Planned bicycles for October 375 Determine the direct labor rate and time variances.
On-Road Wheels, Inc., manufactures a basic road bicycle. Production and sales data for the most recent year are as follows (no beginning inventory): Variable production costs Fixed production costs Variable selling and administrative costs Fixed selling and administrative costs Selling price Production Sales $100 per bike $400,000 $22 per bike $550,000 $200 per bike 20,000 bikes 18,000 bikes Your answer is correct. Prepare a brief income statement using absorption costing. ON-ROAD WHEELS, INC. Income Statement (Absorption Costing) Sales 2 Less...
On-Road Wheels, Inc. manufactures a basic road bicycle. Production and sales data for the most recent year are as follows (no beginning inventory): Variable production costs Fixed production costs Variable selling and administrative costs Fixed selling and administrative costs Selling price Production Sales $100 per bike $400,000 $22 per bike $550,000 $200 per bike 20,000 bikes 18,000 bikes (a) Prepare a brief income statement using absorption costing. ON-ROAD WHEELS, INC. Income Statement (Absorption Costing) Sales Less : e Textbook and...
Great Outdoze Company manufactures sleeping bags, which sell for $65.90 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $18.80 9.40 8.00 Budgeted fixed overhead in 20x1 was $169,400 and budgeted production was 22,000 sleeping bags. The year's actual production was 22,000 units, of which 19,900 were sold. Variable selling and administrative costs were $1.80 per unit sold; fixed selling and administrative costs were $23,000. Required: 1. Calculate the product cost per sleeping...
Please show all calculations.
White Water Rafting Company manufactures kayaks, which sell for $565 each. The variable costs of production (per unit) are as follows: Direct Material $ 200 Direct labor 110 Variable manufacturing overhead 80 Budgeted fixed overhead in 20x1 was $400,000 and budgeted production was 50,000 kayaks. The year's actual production was 50,000 units, of which 47,000 were sold. Variable selling and administrative costs were $5 per unit sold; fixed selling and administrative costs were $75,000. Required: 1....
Great Outdoze, Inc., manufactures high-quality sleeping bags, which sell for $66.00 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $19.50 9.90 7.60 Budgeted fixed overhead in 20x4 was $149,600 and budgeted production was 22,000 sleeping bags. The year's actual production was 22,000 units, of which 18,700 were sold. Variable selling and administrative costs were $1.30 per unit sold; fixed selling and administrative costs were $26,000. Required: 1. Calculate the product cost per...
Cycle Business manufactures and sells road and mountain bikes through a network of retail outlets in western Canada. Below is a partial list of expense items incurred in the most recent month (November), when 1,170 bicycles were manufactured, shipped, and sold. There was no beginning or ending work in process or finished goods inventory in November: October 1,070 November 1,170 Item Units produced and sold Sales Leather used for the bicycle seats Production manager's salary Life insurance for the company...
Most questions answered within 3 hours.
-
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 17 minutes ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 28 minutes ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 1 hour ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 1 hour ago -
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 2 hours ago -
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 2 hours ago -
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 3 hours ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 3 hours ago -
In
your own words, please explain the essay by John Keynes wrote "The
End of Laissez...
asked 3 hours ago -
How are the matrix and pixels related? Why are smaller
pixels better for diagnostic quality?
asked 3 hours ago -
2. An AC generator has 80 rectangular loops on
its armature. Each loop is 11 cm...
asked 3 hours ago -
Please help me with this question. Consider Aldi’s current and
potential geographic markets (see Exhibit 4...
asked 3 hours ago