MANAGERIAL ACCT.F/MANAGERS>CUSTOM<
4th Edition
ISBN: 9781307090147
Author: Noreen
Publisher: MCG/CREATE
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Chapter 5A, Problem 5A.2E
Super-Variable Costing and Variable Costing Unit Product Costs and Income Statements L04—2, LO4—6
Lyons Company manufactures and sells one product. The following information pertains to the company’s first year of operations:
The company does not incur any variable
Required:
- Assume the company uses super-variable costing:
- Compute the unit product cost for the year.
- Prepare an income statement for the year.
- Assume the company uses a variable costing system that assigns $12.50 of direct labor cost to each unit produced:
- Compute the unit product cost for the year.
- Prepare an income statement for the year.
- Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net operating incomes.
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subject-Accounting
Hanks recently produced & sold 2777 units. Fixed costs per unit at this level of activity amounted to $8; variable costs per unit were $9. How much total cost would the company anticipate if during the next period it produced & sold 6919 units? Note: assume this level is still within the relevant range
Round your final answer to 2 decimal places
ch7q39
Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income
Werner Company produces and sells disposable foil baking pans to retailers for $2.95 per pan. The variable cost per pan is as follows:
Direct materials
$0.22
Direct labor
0.56
Variable factory overhead
0.70
Variable selling expense
0.13
Fixed manufacturing cost totals $303,290 per year. Administrative cost (all fixed) totals $41,358.
Required:
1. Compute the number of pans that must be sold for Werner to break even. pans
2. Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent.
Unit variable cost
$
Unit variable manufacturing cost
$
Which is used in cost-volume-profit analysis?Unit variable cost
3. How many pans must be sold for Werner to earn operating income of $11,524? pans
4. How much sales revenue must Werner have to earn operating income 11524$
Q – 5:
Bettina Company incurs the following costs to produce and sell a single product.
Variable costs per unit:
Direct materials $15
Direct labor$7.5
Variable manufacturing overhead$3
Variable selling and administrative expenses$6
Fixed costs per year:
Fixed manufacturing overhead . . . . . . . . . . . . . . . . . $45,000
Fixed selling and administrative expenses . . . . . . . $150,000
During the last year, 15,000 units were produced and 12,500 units were sold. The Finished Goods inventory account at the end of the year shows a balance of $63,750 for the 2,500 unsold units.
Required:
1. Is the company using absorption costing or variable costing to cost units in the Finished Goods inventory account? Show computations to support your answer.
2. Assume that the company wishes to prepare financial statements for the year to issue to its stockholders.
a. Is the $63,750 figure for Finished Goods inventory the correct amount to use on these…
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