GEN COMBO LL MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD
16th Edition
ISBN: 9781260088458
Author: Ray H Garrison
Publisher: McGraw-Hill Education
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Chapter IE, Problem 12IE
INTEGRATION EXERCISE 12 Cost-Volume-Profit Relationships, Variable Costing LO1-4, LO5-1, LO5-5,LO5-7, LO5-8, L06-1, LO6-2, LO6-3
Refer to the information pertaining to Endless Mountain Company that is provided in Integration Exercise 9. In addition to the budget schedules that you prepared in Integration Exercise 9, insert two new tabs in your Microsoft Excel worksheet titled “CVP Analysis”and “Variable Costing.”
Required(For all questions, be sure to use formulas that link to the other tabs in your Microsoft Excel worksheet when performing your calculations):
- Calculate the following budgeted figures for 2017:
- The total fixed cost.
- The variable cost per unit sold.
- The contribution margin per unit sold
- The break-even point in unit sales and dollar sales.
- The margin of safety.
- The degree of operating leverage
- Calculate the following budgeted figures for 2017:
- A variable costing income statement. Stop your computations at net operating income.
- A reconciliation that explains the difference in the absorption costing and variable costing net operating incomes.
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Question A21
Alders Ltd use an absorption costing and have calculated an overhead absorption rate based on units of output.
The following information is relevant to the last quarter:
Budgeted overhead was £231,000
Actual overhead was £235,000
Actual output was 11,000 units
Budgeted output was 10,500 units
What was the level of under or over absorption in the last quarter?
A
£7,000 over absorbed
B
£4,000 under absorbed
C
£4,000 over absorbed
D
£7,000 under absorbed
13. Select the costing, which help in comparing the performance among companies.
a.Budgetary costing
b.Standard costing
c.Uniform costing
d.Absorption costing
14. If economic order quantity is 3,000 units and consumption in units for one year are 15,000 units, then number of orders in a year will be:
a.12 orders
b.5 orders
c.10 orders
d.6 orders
Question Content AreaMargin of safety
Organic Health Care Products Inc. expects to maintain the same inventories at the end of 20Y8 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 20Y8. A summary report of these estimates is as follows:
Estimated Fixed Cost Estimated Variable Cost(per unit sold)Production costs: Direct materials — $ 8.00 Direct labor — 3.00 Factory overhead $ 200,000 1.50 Selling expenses: Advertising 1,450,000 — Sales salaries and commissions 93,000 1.85 Travel 340,000 — Miscellaneous selling expense 2,000 0.10 Administrative expenses:…
Chapter IE Solutions
GEN COMBO LL MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD
Ch. IE - Prob. 10IECh. IE -
INTEGRATION EXERCISE 11 Financial Statement Ratio...Ch. IE - INTEGRATION EXERCISE 12 Cost-Volume-Profit...Ch. IE - INTEGRATION EXERCISE 13 Master Budgeting,...Ch. IE - Prob. 1IECh. IE - Prob. 2IECh. IE - INTEGRATION EXERCISE 3 Absorption Costing....Ch. IE - Prob. 4IECh. IE - Prob. 5IECh. IE - Prob. 6IE
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