Benjamin Company had the following results of operations for the past year: Sales (17,600 units at $10.00) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income $ 176,000 35,200 70,400 3,520 66,880 14,080 35,200 $ 17,600 A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,400 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $660 and fixed selling and administrative costs by $330. Assuming Benjamin has excess capacity and accepts the offer, its profits will:
Benjamin Company had the following results of operations for the past year: Sales (17,600 units at $10.00) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income $ 176,000 35,200 70,400 3,520 66,880 14,080 35,200 $ 17,600 A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,400 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $660 and fixed selling and administrative costs by $330. Assuming Benjamin has excess capacity and accepts the offer, its profits will:
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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