Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 7,500 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: Units sold Units produced Costs: Variable factory overhead per unit Fixed factory overhead Variable marketing per unit Fixed Selling and Administrative Multiple Choice Full costing operating income for 2018 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.) $2,150. O $132. O $580. $1,110. 2018 2019 6,000 3,500 7,500 4,500 $960. $ 0.15 0.15 $1,500 $ 900 $ 0.30 $0.30 $ 320 $ 320

Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 7,500 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: Units sold Units produced Costs: Variable factory overhead per unit Fixed factory overhead Variable marketing per unit Fixed Selling and Administrative Multiple Choice Full costing operating income for 2018 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.) $2,150. O $132. O $580. $1,110. 2018 2019 6,000 3,500 7,500 4,500 $960. $ 0.15 0.15 $1,500 $ 900 $ 0.30 $0.30 $ 320 $ 320

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
KALIBO CORP. prepared the following absorption-costing income statement for the year ended May 31, 2019 Sales (16,000 units) Cost of goods sold Gross margin Selling and administrative expenses Operating income Additional information follows: Selling and administrative expenses include P1.50 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were P11 per unit. Actual fixed costs were equal to budgeted fixed costs. REQUIREMENT: Prepare a variable-costing income statement for the same period. P 320,000 216.000 P104,000 46.000 P 58,000 Absorption Costing Income Statement (Conversion from Variable Net Income) 4. LEGAZPI COMPANY manufactures and sells premium tomato juice by the gallon. LEGAZPI just finished its first year of operations. The following data relates to this first year:
Adele Watches has the following cost information for 2019:Direct materials P6.00 per unitDirect labor P4.00 per unitVariable manufacturing overhead P2.00 per unitVariable selling and administrative cost P1.00 per unitFixed manufacturing overhead P80,000Fixed selling and administrative cost P25,000Selling Price P23.00Units produce 25,000 unitsUnits sold 23,000 units Provide the following: 1. Income statement using variable costing. 2. income statement using Absortption costing. 3. For internal decision making, which income statement would be more useful? Why?
Boateng Plc is a company that produces and sells one product "Excellence". Information relating to the operations of George Plc for the first two months of 2023 are as follows: i) Excellence sells for GHC500 per unit. There were no inventories of Excellence at the end of December 2022. Other relevant information is as follows: Standard cost per unit of Excellence: Direct material and wages Variable production overhead GHC 220 30 Budgeted and actual costs per month: Fixed production overhead 990,000 Fixed selling and admin. expenses 400,000 Variable selling expenses 12.5% of sales Normal capacity 110,000 units per month Number of units produced and sold: January February Sales (units) 128,000 110,000 Production (units) 140,000 102,000 Required: Using the information above, prepare in a columnar form profit statements for January and February 2023 using: a) Marginal costing b) Absorption costing
Buller Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2019:Budgeted manufacturing overhead costs Budgeted machine-hoursActual manufacturing overhead costs Actual machine-hoursRequired:$4,800,000 180,000 $3,990,000150,0001. Calculate the budgeted manufacturing overhead rate.2. Calculate the manufacturing overhead allocated during 2019.3. Calculate the amount of under- or overallocated manufacturing overhead. Whydo Buller’s managers need to calculate this amount?
Pennell Company gathered the following information for the year ended December 31, 2018. During the year, Pennell produced and sold 75,000 units of product at a sale price of $660 per unit. There was no beginning inventory of product on January 1, 2018. What is contribution margin per ?unit Fixed costs: Manufacturing Marketing Administrative $180,000 55,000 25,000 Variable costs: Manufacturing Marketing Administrative $112,500 37,500 45,000 4.00 O 3.60 2.60 6.60 3.00 ip HEWLETT-PA CKARD
Mission Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the information provided below (CMA adapted) Multiple Choice Units produced Material moves per product line Direct labor-hours per product line Budgeted material handling costs: $594,000 Under a traditional costing system that allocates overhead on the basis of direct labor-hours, the materials handling costs allocated to one unit of Wall Mirrors would be O $1000 $1.350 $5,400 Wall Mirrors 210 5 1,050 $22.000 Specialty Nindows 25 46
For 2019, Kim, Inc., had production of 200,000 units and sales of 160,000 units. Selling price is $6 per unit. Other information for the year included: Direct manufacturing labor $228,000 Variable manufacturing overhead 120,000 Direct materials 180,000 Variable selling expenses 144,000 Fixed administrative expenses 96,000 Fixed manufacturing overhead 216,000 There was no beginning inventory.Compute ending finished goods inventory under variable costing.
Jackson Inc. listed the following data for 2019: Budgeted factory overhead $1,352,000 Budgeted direct labor hours 80,000 Budgeted machine hours 41,600 Actual factory overhead 1,100,000 Actual direct labor hours 87,700 Actual machine hours 40,800 If overhead is applied based on direct labor hours, overapplied/underapplied overhead is (round calculations to 2 significant digits): Multiple Choice $382,130 overapplied. $382,130 underapplied. $331,166 underapplied. $331,166 overapplied. $ − 0 −. My answer is $226,000 overapplied. But I don't show that answer.
< Deluxe, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Deluxe allocates manufacturing overhead to production based on standard direct labor hours. Deluxe reported the following actual results for 2024: actual number of units produced, 1,000, actual variable overhead, $5,000, actual fixed overhead, $3,200; actual direct labor hours, 1,400. Read the requirements Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours Print The fixed overhead cost variance is The fixed overhead volume variance is $2,100 $2,800 1,400 hours 700 units 2 hours per unit Done Requirements 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable irect labor hour was sed Print Done because the total fixed overhead cost was because…
Pennell Company gathered the following information for the year ended December 31, 2018. During the year, Pennell produced and sold 75,000 units of product at a sale price of $6.60 per unit. There was no beginning ?inventory of product on January 1, 2018. What is Margin of Safety in units Fixed costs: Manufacturing Marketing Administrative $180,000 55,000 25,000 Variable costs: Manufacturing Marketing Administrative $112,500 37,500 45,000 10,000 O 30,000 75,000 O 45,000 65,000 Evecutivemanecament st Cun loe coffeeshons e vory nessimisticabout. hp HEWLETT-PA CKARD
TB MC Qu. 18-47 (Algo) Full costing operating income for the next year: Smooth Incorporated Smooth Incorporated manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2021 and 2022 was 5,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations: Units sold Units produced Costs: Variable factory overhead per unit Fixed factory overhead Variable marketing per unit Fixed Selling and Administrative 2021 3,500 5,000 $ 0.65 $2,250 $ 0.75 $ 650 2022 5,200 5,000 $ 0.65 $2,250 $ 0.80 $ 650 Full costing operating income for 2022 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)