21-1DQ Introduction: Variable cost: Variable cost is a method used for computing product cost. It is sum total of all variable components which include Variable material cost, Variable labor cost and variable manufacturing overheads. The main feature of variable costing is that cost under this method is incurred only when product is produced. It means if no production is done then at least no variable cost will be incurred. To determine: Define variable cost and identify two variable cost

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 21, Problem 1DQ

To determine

21-1DQ

Introduction:

Variable cost: Variable cost is a method used for computing product cost. It is sum total of all variable components which include Variable material cost, Variable labor cost and variable manufacturing overheads. The main feature of variable costing is that cost under this method is incurred only when product is produced. It means if no production is done then at least no variable cost will be incurred.

To determine:

Define variable cost and identify two variable cost

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

Variable cost (in $) is sum total of

Variable material cost ($) xxx

Add: Variable labor cost ($) xxx

Add: Variable manufacturing overheads ($) xxx

Variable cost ($) xxx

Note: Please note that question does not contain any numerical data, so “solution” part incorporates only such formula.

Further, Raw material cost and Labor cost will be treated as Variable cost.

Explanation of Solution

Variable cost:

The main saying about variable cost is that:

“Per unit Variable cost remain same and changes in totality.”

Total variable cost is computed by multiplying per unit variable cost with nos. of units produced. As units produces changes, variable cost changes in totality.

It is used in conducting decision making regarding sale of product. As fixed cost always likely to occur whether product manufactured or not. So it helps in decision making in the way that product can be sold if only variable cost will be recovered or say for computing Break-even point.

Variable cost used in computing contribution with the help of formula:

Contribution: Sales- Variable cost

Identification of two variable costs:

Raw material used in manufacturing finished product is treated as Variable component.

It fulfills all the conditions of having a part of variable cost. As if no finished product is manufactured, no raw material component required. Further as much as production is done, raw material requirement stands increased.

So raw material cost is variable cost.

On the base of same context as in raw material, direct labor hours cost also treat as variable cost. As much as units will produce, per direct labor hour used in manufacturing per unit gets multiplied or vice versa.

Conclusion

Conclusions:

Raw material cost and Labor cost will be treated as variable cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 2

Question

Chapter 21, Problem 1DQ

To determine

21-1DQ

Introduction:

Variable cost: Variable cost is a method used for computing product cost. It is sum total of all variable components which include Variable material cost, Variable labor cost and variable manufacturing overheads. The main feature of variable costing is that cost under this method is incurred only when product is produced. It means if no production is done then at least no variable cost will be incurred.

To determine:

Define variable cost and identify two variable cost

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

Variable cost (in $) is sum total of

Variable material cost ($) xxx

Add: Variable labor cost ($) xxx

Add: Variable manufacturing overheads ($) xxx

Variable cost ($) xxx

Note: Please note that question does not contain any numerical data, so “solution” part incorporates only such formula.

Further, Raw material cost and Labor cost will be treated as Variable cost.

Explanation of Solution

Variable cost:

The main saying about variable cost is that:

“Per unit Variable cost remain same and changes in totality.”

Total variable cost is computed by multiplying per unit variable cost with nos. of units produced. As units produces changes, variable cost changes in totality.

It is used in conducting decision making regarding sale of product. As fixed cost always likely to occur whether product manufactured or not. So it helps in decision making in the way that product can be sold if only variable cost will be recovered or say for computing Break-even point.

Variable cost used in computing contribution with the help of formula:

Contribution: Sales- Variable cost

Identification of two variable costs:

Raw material used in manufacturing finished product is treated as Variable component.

It fulfills all the conditions of having a part of variable cost. As if no finished product is manufactured, no raw material component required. Further as much as production is done, raw material requirement stands increased.

So raw material cost is variable cost.

On the base of same context as in raw material, direct labor hours cost also treat as variable cost. As much as units will produce, per direct labor hour used in manufacturing per unit gets multiplied or vice versa.

Conclusion

Conclusions:

Raw material cost and Labor cost will be treated as variable cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 21, Problem 1DQ

To determine

21-1DQ

Introduction:

Variable cost: Variable cost is a method used for computing product cost. It is sum total of all variable components which include Variable material cost, Variable labor cost and variable manufacturing overheads. The main feature of variable costing is that cost under this method is incurred only when product is produced. It means if no production is done then at least no variable cost will be incurred.

To determine:

Define variable cost and identify two variable cost

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

Variable cost (in $) is sum total of

Variable material cost ($) xxx

Add: Variable labor cost ($) xxx

Add: Variable manufacturing overheads ($) xxx

Variable cost ($) xxx

Note: Please note that question does not contain any numerical data, so “solution” part incorporates only such formula.

Further, Raw material cost and Labor cost will be treated as Variable cost.

Explanation of Solution

Variable cost:

The main saying about variable cost is that:

“Per unit Variable cost remain same and changes in totality.”

Total variable cost is computed by multiplying per unit variable cost with nos. of units produced. As units produces changes, variable cost changes in totality.

It is used in conducting decision making regarding sale of product. As fixed cost always likely to occur whether product manufactured or not. So it helps in decision making in the way that product can be sold if only variable cost will be recovered or say for computing Break-even point.

Variable cost used in computing contribution with the help of formula:

Contribution: Sales- Variable cost

Identification of two variable costs:

Raw material used in manufacturing finished product is treated as Variable component.

It fulfills all the conditions of having a part of variable cost. As if no finished product is manufactured, no raw material component required. Further as much as production is done, raw material requirement stands increased.

So raw material cost is variable cost.

On the base of same context as in raw material, direct labor hours cost also treat as variable cost. As much as units will produce, per direct labor hour used in manufacturing per unit gets multiplied or vice versa.

Conclusion

Conclusions:

Raw material cost and Labor cost will be treated as variable cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 21, Problem 1DQ

To determine

21-1DQ

Introduction:

Variable cost: Variable cost is a method used for computing product cost. It is sum total of all variable components which include Variable material cost, Variable labor cost and variable manufacturing overheads. The main feature of variable costing is that cost under this method is incurred only when product is produced. It means if no production is done then at least no variable cost will be incurred.

To determine:

Define variable cost and identify two variable cost

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

Variable cost (in $) is sum total of

Variable material cost ($) xxx

Add: Variable labor cost ($) xxx

Add: Variable manufacturing overheads ($) xxx

Variable cost ($) xxx

Note: Please note that question does not contain any numerical data, so “solution” part incorporates only such formula.

Further, Raw material cost and Labor cost will be treated as Variable cost.

Explanation of Solution

Variable cost:

The main saying about variable cost is that:

“Per unit Variable cost remain same and changes in totality.”

Total variable cost is computed by multiplying per unit variable cost with nos. of units produced. As units produces changes, variable cost changes in totality.

It is used in conducting decision making regarding sale of product. As fixed cost always likely to occur whether product manufactured or not. So it helps in decision making in the way that product can be sold if only variable cost will be recovered or say for computing Break-even point.

Variable cost used in computing contribution with the help of formula:

Contribution: Sales- Variable cost

Identification of two variable costs:

Raw material used in manufacturing finished product is treated as Variable component.

It fulfills all the conditions of having a part of variable cost. As if no finished product is manufactured, no raw material component required. Further as much as production is done, raw material requirement stands increased.

So raw material cost is variable cost.

On the base of same context as in raw material, direct labor hours cost also treat as variable cost. As much as units will produce, per direct labor hour used in manufacturing per unit gets multiplied or vice versa.

Conclusion

Conclusions:

Raw material cost and Labor cost will be treated as variable cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 21, Problem 1DQ

To determine

21-1DQ

Introduction:

Variable cost: Variable cost is a method used for computing product cost. It is sum total of all variable components which include Variable material cost, Variable labor cost and variable manufacturing overheads. The main feature of variable costing is that cost under this method is incurred only when product is produced. It means if no production is done then at least no variable cost will be incurred.

To determine:

Define variable cost and identify two variable cost

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

Variable cost (in $) is sum total of

Variable material cost ($) xxx

Add: Variable labor cost ($) xxx

Add: Variable manufacturing overheads ($) xxx

Variable cost ($) xxx

Note: Please note that question does not contain any numerical data, so “solution” part incorporates only such formula.

Further, Raw material cost and Labor cost will be treated as Variable cost.

Explanation of Solution

Variable cost:

The main saying about variable cost is that:

“Per unit Variable cost remain same and changes in totality.”

Total variable cost is computed by multiplying per unit variable cost with nos. of units produced. As units produces changes, variable cost changes in totality.

It is used in conducting decision making regarding sale of product. As fixed cost always likely to occur whether product manufactured or not. So it helps in decision making in the way that product can be sold if only variable cost will be recovered or say for computing Break-even point.

Variable cost used in computing contribution with the help of formula:

Contribution: Sales- Variable cost

Identification of two variable costs:

Raw material used in manufacturing finished product is treated as Variable component.

It fulfills all the conditions of having a part of variable cost. As if no finished product is manufactured, no raw material component required. Further as much as production is done, raw material requirement stands increased.

So raw material cost is variable cost.

On the base of same context as in raw material, direct labor hours cost also treat as variable cost. As much as units will produce, per direct labor hour used in manufacturing per unit gets multiplied or vice versa.

Conclusion

Conclusions:

Raw material cost and Labor cost will be treated as variable cost.

Answer 6

Chapter 21, Problem 1DQ

To determine

21-1DQ

Introduction:

Variable cost: Variable cost is a method used for computing product cost. It is sum total of all variable components which include Variable material cost, Variable labor cost and variable manufacturing overheads. The main feature of variable costing is that cost under this method is incurred only when product is produced. It means if no production is done then at least no variable cost will be incurred.

To determine:

Define variable cost and identify two variable cost

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

Variable cost (in $) is sum total of

Variable material cost ($) xxx

Add: Variable labor cost ($) xxx

Add: Variable manufacturing overheads ($) xxx

Variable cost ($) xxx

Note: Please note that question does not contain any numerical data, so “solution” part incorporates only such formula.

Further, Raw material cost and Labor cost will be treated as Variable cost.

Explanation of Solution

Variable cost:

The main saying about variable cost is that:

“Per unit Variable cost remain same and changes in totality.”

Total variable cost is computed by multiplying per unit variable cost with nos. of units produced. As units produces changes, variable cost changes in totality.

It is used in conducting decision making regarding sale of product. As fixed cost always likely to occur whether product manufactured or not. So it helps in decision making in the way that product can be sold if only variable cost will be recovered or say for computing Break-even point.

Variable cost used in computing contribution with the help of formula:

Contribution: Sales- Variable cost

Identification of two variable costs:

Raw material used in manufacturing finished product is treated as Variable component.

It fulfills all the conditions of having a part of variable cost. As if no finished product is manufactured, no raw material component required. Further as much as production is done, raw material requirement stands increased.

So raw material cost is variable cost.

On the base of same context as in raw material, direct labor hours cost also treat as variable cost. As much as units will produce, per direct labor hour used in manufacturing per unit gets multiplied or vice versa.

Conclusion

Conclusions:

Raw material cost and Labor cost will be treated as variable cost.

Answer 7

Chapter 21, Problem 1DQ

To determine

21-1DQ

Introduction:

Variable cost: Variable cost is a method used for computing product cost. It is sum total of all variable components which include Variable material cost, Variable labor cost and variable manufacturing overheads. The main feature of variable costing is that cost under this method is incurred only when product is produced. It means if no production is done then at least no variable cost will be incurred.

To determine:

Define variable cost and identify two variable cost

Answer 8

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

Variable cost (in $) is sum total of

Variable material cost ($) xxx

Add: Variable labor cost ($) xxx

Add: Variable manufacturing overheads ($) xxx

Variable cost ($) xxx

Note: Please note that question does not contain any numerical data, so “solution” part incorporates only such formula.

Further, Raw material cost and Labor cost will be treated as Variable cost.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Variable cost:

The main saying about variable cost is that:

“Per unit Variable cost remain same and changes in totality.”

Total variable cost is computed by multiplying per unit variable cost with nos. of units produced. As units produces changes, variable cost changes in totality.

It is used in conducting decision making regarding sale of product. As fixed cost always likely to occur whether product manufactured or not. So it helps in decision making in the way that product can be sold if only variable cost will be recovered or say for computing Break-even point.

Variable cost used in computing contribution with the help of formula:

Contribution: Sales- Variable cost

Identification of two variable costs:

Raw material used in manufacturing finished product is treated as Variable component.

It fulfills all the conditions of having a part of variable cost. As if no finished product is manufactured, no raw material component required. Further as much as production is done, raw material requirement stands increased.

So raw material cost is variable cost.

On the base of same context as in raw material, direct labor hours cost also treat as variable cost. As much as units will produce, per direct labor hour used in manufacturing per unit gets multiplied or vice versa.