Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plant’s operation. Beginning inventory 0 Units produced 50,000 Units sold 45,000 Selling price per unit $76 Selling and administrative expenses: Variable per unit $3 Fixed (total) $567,000 Manufacturing costs Direct materials cost per unit $15 Direct labor cost per unit $7 Variable manufacturing overhead cost per unit $3 Fixed manufacturing overhead cost (total) $900,000. on the basis of aborption costing. Determine the unit product cost. Prepare an income statement for the month. on the basis of variable costing. Determine the unit product cost. Prepare an contribution formate income statement for the month.
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.
Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened
a new plant to manufacture the antenna, and the following cost and revenue data have been provided for
the first month of the plant’s operation.
Beginning inventory 0
Units produced 50,000
Units sold 45,000
Selling price per unit $76
Selling and administrative expenses:
Variable per unit $3
Fixed (total) $567,000
Manufacturing costs
Direct materials cost per unit $15
Direct labor cost per unit $7
Variable
Fixed manufacturing overhead cost (total) $900,000.
on the basis of aborption costing.
Determine the unit product cost.
Prepare an income statement for the month.
on the basis of variable costing.
Determine the unit product cost.
Prepare an contribution formate income statement for the month.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
