Gabby: X Ltd currently uses marginal costing to calculate profit. There were 10,000 units of opening stock and 12,000 units of closing stock for the period. If absorption costing principles had been used and the fixed overhead absorption rate was GH¢30 per unit, the absorption costing profit for the period compared to the marginal costing profit would have been A. GH¢30,000 lower. B. GH¢30,000 higher. C. GH¢60,000 lower. D. GH¢60,000 higher

Q: A company produces and sells two products with the following costs: Variable costs (per £ of sales)…

A: Break-Even Sales: It the amount of Revenue at which the Total Cost of Production (Variable Costs +…

Q: A company produces and sells a single product whose variable cost is $6 per unit. Fixed costs have…

A: We have the following information: Variable Cost: $6 per unit Fixed Cost: $2 per unit with normal…

Q: In June 2018, Refresh Ade produced 6,000 jars of powdered drink mix and sold 5,000 jars.The sale…

A: Solution  ) Particulars   Amount ($) Variable cost 6,000 units @ 20 120,000 Fixed cost…

Q: During the month of August, Amer Corpo them for P20 per unit. Total fixed cost for the period were P…

A: The contribution margin can be stated as a percentage of the total or as a percentage of each unit…

Q: In a period where opening stocks were 15,000 units and closing stock were 20,000 units, a firm had a…

A: Formula: Fixed cost = Profit using marginal costing - profit using absorption costing. Deduction of…

Q: a. Compare the two companies’ cost structures.

A: a. Cost Structures of both the companies   GREENBACK STORE ONE-MART   Amount ($) Percentage of…

Q: The Avengers Company is trying to do cost volume profit analysis with following information for the…

A: Contribution margin = sales - variable costs = 1100000-660000 = P440,000 No. of units sold = sales /…

Q: Last year, Stephen Company had 20,000 units in its ending inventory. During the year, Stephen's…

A: Decrease in Inventory = Operating Income Differences / Fixed manufacturing overhead cost per unit =…

Q: At the end of last year, Amelie had 30,000 units in its ending inventory. Amelie's variable…

A: Difference in Units=Difference in Net income Fixed Manufacturing overhead per unit

Q: Manny Co. reported the following per unit cost for the period just ended: Direct materials…

A: Solution: Unit product cost using the absorption approach = Direct materials + Direct labor +…

Q: Based on variable costing, if NUBD Co had sold 12.002 units instead of 12,000, its income before…

A: Total Variable cost = P50,000 Total Variable period cost = P30,000 Total Variable manufacturing cost…

Q: A company produces a single product. Variable production costs are P12 per unit and variable selling…

A: Given that, Variable production cost per  unit = P12 per unit  Opening inventory = 0 Production…

Q: The Greenback Store’s cost structure is dominated by variable costs with a contribution margin ratio…

A: Please find the answer to the above question below:

Q: Using Direct Costing Method, Laban Company had a net profit of ₱65,000 and ₱50,000 using Full…

A: Single Step Income Statement is a method of expressing a profit and loss statement that lists all…

Q: Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information…

A: Variable costs: Variable costs are those costs that change in proportion to change in the production…

Q: When opening inventories were 8,500 litres and closing inventories were 7,100 litres, William Co had…

A: Concept: The inventory levels is reduced which means absorption costing profit will be lower than…

Q: Assume the following information for a product line: Sales $700,000 Variable cost of goods sold…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Following September HASF continued its operations results follows  Production…

A: The profit is calculated as difference between sales revenue and total cost.

Q: Under Absorption Costing, Net sales of Pacquiao Incorporated totaled P500,000 and the gross profit…

A: Gross profit under absorption costing = P500,000 x 35% = P175,000   Fixed manufacturing overhead…

Q: In a period, opening stock is 12,600 units and closing stock is 14, 100 units. The profit using…

A: In order to determine the fixed overhead absorption rate, the budgeted fixed overheads are required…

Q: Bambam grp. has income of 3000 under variable costing. Product cost per unit under Variable costing…

A: Under Variable costing only, Variable manufacturing costs (i.e., Direct materials, Direct Labor and…

Q: The following data relate to Lobo Corporation for the year just ended: Sales revenue $750,000 Cost…

A: Contribution refers to earnings left after deducting all direct costs from the sales revenue. It is…

Q: During the year, FITA Corporation produced 500 units of new products. The new product’s variable and…

A: Absorption costing and variable costing are two methods of costing. Under absorption costing, total…

Q: Lavender Company’s income under absorption costing was P 3,600 lower than its income under variable…

A: Variable production cost=Total variable cost-Variable selling cost=P 9 - P 1=P 8

Q: Moon Bright Sdn. Bhd. is a manufacturer of dish cleaners. The following figures show the cost per…

A: Given, Selling price RM          200   Direct materials RM            80   Direct labor…

Q: At the end of Nabirukan Co.’s first year of operations, 1,000 units of inventory remained on hand.…

A: Answer:   Option A.

Q: Jaybird Company operates in a highly competitive market where the market price for its product is…

A: Reduction in cost required per unit = Total cost per unit  - Target cost Total cost per unit = Total…

Q: Compute gross profit if we use Marginal costing. Compute operating profit if we use Marginal…

A:

Q: Benjamin Company had the following results of operations for the past year: Sales (17,600 units at…

A: In order to determine the contribution margin per unit, the variable cost per units are required to…

Q: nfotech Co. produces 20,000 units and sells 18,000 units of microchips in a period. There are no…

A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…

Q: What was the absorption costing net operating income last year?

A: Computation of Net operating income under absorption costing

Q: Units produced and sold 150   300   Selling price per unit $400   $200   Variable expenses per…

A: Fixed costs are those costs which generally do not change with change in activity level. Variable…

Q: Based on variable costing, what would NUBD Corp. show as the value of its ending inventory? Format:…

A: Unit cost under variable costing = Direct material used + direct labor + Variable manufacturing…

Q: Last month a manufacturing company’s profit was $ 2,000, calculated using absorption costing…

A: Under Absorption costing, all manufacturing costs (i.e., Direct Materials, Direct Labor, Variable…

Q: The following cost details relate to one unit of product Alphatron. Variable materials Variable…

A: The ending inventory is the inventory left in stock that are not sold yet at year end.

Q: At the beginning of period 1, there are no opening inventories of the product, for which the…

A: Variable costing: Under the variable costing only the variable manufacturing costs like direct…

Q: At the end of the accounting period Tubman, Inc. reports operating income of $50,000, a contribution…

A: Under the variable costing, fixed costs are taken as period costs and taken as a whole amount.…

Q: J Company uses the high-low method of estimating costs. Ajax had total costs of $50,000 at its…

A: Under high low method, variable cost per unit and fixed cost are distinguished and cost on any…

Q: Compute for the net income/(loss) under absorption, variable and throughput costing Franz began…

A: Absorption costing :  In this method ,all manufacturing costs are taken as product costs,regardless…

Q: Thornton Manufacturing Company reported the following data regarding a product it manufactures and…

A: Alternatively, Break Even Point in Dollars = Break Even Point in Units x Selling Price = 12100 x 44…

Q: Garrett Company provided the following information: Common fixed cost totaled $46,000. Garrett…

A: There are mainly two type of costs being incurred in business. One is variable costs and other one…

Q: Jaybird Company operates in a highly competitive market where the mnarket price for its product is…

A: Any expense incurred by a business during the manufacturing or production process for its goods and…

Q: n the last reporting period, Harold's Hat Company recorded 100,000 units sold for the first time in…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: Company XYZ made total contribution margin of $ 300,000 and a net income of $ 140,000. The company…

A: Net income = Contribution margin - fixed cost $140000 = $ 300000 - fixed cost Fixed cost = $ 300000…

Q: During the year, ABS Corporation produced 500 units of new products. The new product’s variable and…

A: Absorption costing and variable costing are two methods of costing. Under absorption costing, total…

Q: Using Direct Costing Method, Laban Company had a net profit of ₱65,000 and ₱50,000 using Full…

A: SOLUTION-   EXPLANATION- CALCULATION OF FIXED MOH- FIXED MOH= NET PROFIT USING DIRECT COSTING METHOD…

Q: Company XYZ made total contribution margin of $300,000 and a net income of $140,000. The company…

A: Fixed Manufacturing Cost:-It is those expenses or cost which can never be changed with the change in…

Q: Last month a manufacturing company's profit was $2,000, calculated using absorption costing…

A: Change in inventory reflects the difference in marginal costing and absorption costing.…

Q: In the last reporting period, Helena's Heavenly Fixture Company recorded 80,000 units sold for the…

A: Contribution Margin: Contribution margin is the selling price of a product. It represents the money…