PROBLEM III, Silva Corporation uses an absorption costing system for internal reportingpurposes, At present, however, it is considering to use the variable costing system,Following are some data regarding Silva Corporation's budgeted and actual operations forthe calendar year 2008:BUDGETED25,20018,4808,40010,64016,80014,7004,2006,300104,720COSTSACTUAL23,40017,1607,80010,00015,00014,7003,7506,37598,185MaterialsLaborVariable Factory OverheadFixed Factory OverheadVariable Selling ExpensesFixed Selling ExpensesVariable Administrative ExpensesFixed Administrative ExpensesActualBudgeted(Units)(Units)Finished Goods Beginning InventoryProductionSales2802801,1201,1201,0401,000The budgeted costs were computed based on the budgeted production and sales of 1,120units, the company's normal capacity level, Silva Corporation uses a predetermined factoryoverhead rate for applying manufacturing overhead costs to its product, The denominatorlevel used in developing the predetermined rate is the firm's normal capacity. Any over-or underapplied factory overhead cost is closed to cost of goods sold at the end of theyear,There are no work-in-process inventories at either the beginning or end of the year, Theactual selling price was the same as the amount planned, P130 per unit,The previous year's planned per unit manufacturing costs were the same as the currentplanned unit manufacturing cost, The beginning inventory of finished goods for absorptioncosting purposes was valued at such per unit manufacturing cost,Required:1, The standard product costs per unit under absorption and variable costing2, The manufacturing cost variances under absorption and variable costing3, Silva Corporation's operating income under both absorption and variable costingmethods4, The values of Silva Corporation's actual ending finished goods inventory underabsorption and variable costing methods5, Silva Corporation's total fixed costs expensed this year on both costing methods6, Silva Corporation's actual manufacturing contribution margin for the year calculated onthe variable costing basis7, Silva Corporation's actual contribution margin for the year calculated on the variablecosting basis8, The total variable costs expensed currently by Silva Corporation on both the absorptionand variable costing basis9, The difference between Silva Corporation's operating income calculated on absorptionand variable costing basis

As per rules one three subparts are answerable please post the remaining as the separate subparts.

Answered: PROBLEM I, Silva Corporation uses an…

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

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...

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PROBLEM I, Silva Corporation uses an absorption costing system for internal reporting purposes, At present, however, it is considering to use the variable costing system, Following are some data regarding Silva Corporation's budgeted and actual operations for