Cost Accounting: A Managerial Emphasis, 15th Edition
Cost Accounting: A Managerial Emphasis, 15th Edition
15th Edition
ISBN: 9780133803815
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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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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