Production volume variance when denominator level is theoretical capacity.

Question

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Answer 1

Question

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

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Answer 2

Question

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

Answer 6

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

Answer 7

Chapter 9, Problem 9.33P

1.

a.

To determine

To compute: Production volume variance when denominator level is theoretical capacity.

Answer 8

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

Answer 9

b.

To determine

To compute: Production volume variance when denominator level is practical capacity.

Answer 10

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

Answer 11

c.

To determine

To compute: Production volume variance when denominator level is normal capacity.

Answer 12

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

Answer 13

2.

To determine

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

Answer 14

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

Answer 15

To determine

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

Answer 16

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

Answer 17

4.

To determine

To compute: Reconcile the operating income based on theoretical and practical capacity.

Answer 18

Expert Solution & Answer

Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

Ch. 9 - Differences in operating income between variable...Ch. 9 - Why is the term direct costing a misnomer?Ch. 9 - Do companies in either the service sector or the...Ch. 9 - Explain the main conceptual issue under variable...Ch. 9 - Companies that make no variable-cost/fixed-cost...Ch. 9 - The main trouble with variable costing is that it...Ch. 9 - Give an example of how, under absorption costing,...Ch. 9 - What are the factors that affect the breakeven...Ch. 9 - Critics of absorption costing have increasingly...Ch. 9 - What are two ways of reducing the negative aspects...

Production volume variance when denominator level is theoretical capacity.

To compute: Production volume variance when denominator level is theoretical capacity.

To compute: Production volume variance when denominator level is practical capacity.

To compute: Production volume variance when denominator level is normal capacity.

To prepare: Absorption costing-based income statement using theoretical capacity, practical capacity and normal capacity utilization.

3. To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.

To compute: Reconcile the operating income based on theoretical and practical capacity.

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Chapter 9 Solutions

3.

To explain: Reason because of which operating income under normal capacity is lower than other two scenarios.