Please do not give solution in image format thanku Exercise 11-16A (Algo) Variable costing versus absorption costing LO 11-4Campbell Company Incurred manufacturing overhead cost for the year as follows.Direct materialsDirect laborManufacturing overheadVariableFixed ($19.00/unit for 1,200 units)Variable selling and administrative expensesFixed selling and administrative expensesThe company produced 1,200 units and sold 700 of them at $180.40 per unit. Assume that the production manager is paid a 2 percentbonus based on the company's net income.Requireda. Prepare an Income statement using absorption costing.b. Prepare an income statement using variable costing.c. Determine the manager's bonus using each approach. Which approach would you recommend for Internal reporting?Required A Required B Required CPrepare an income statement using absorption costing.$ 38.30/unit$ 26.60/unitComplete this question by entering your answers in the tabs below.Cost of goods Sold$ 11.80/unit$22,800$ 4,760$14,700CAMPBELL COMPANYIncome Statement(Absorption Costing)< Required A$$00Required B > Requireda. Prepare an income statement using absorption costing.b. Prepare an income statement using variable costing.c. Determine the manager's bonus using each approach. Which approach would you recommend for Internal reporting?Complete this question by entering your answers in the tabs below.Required A Required B Required CPrepare an income statement using variable costing.Variable costsDirect materialsDirect laborCAMPBELL COMPANYIncome Statement(Variable Costing)Manufacturing overheadVariable< Required AExercise 11-16A (Algo) Variable costing versus absorption costing LO 11-4Fixed ($19.00/unit for 1,200 units)Variable selling and administrative expensesFixed selling and administrative expensesCampbell Company Incurred manufacturing overhead cost for the year as follows.SSRequired A Required B Required CAbsorption costingVariable costingWhich approach is recommended?Required C >< Required B00$ 38.30/unit$ 26.60/unitThe company produced 1,200 units and sold 700 of them at $180.40 per unit. Assume that the production manager is paid a 2 percentbonus based on the company's net income.Requireda. Prepare an Income statement using absorption costing.b. Prepare an Income statement using variable costing.c. Determine the manager's bonus using each approach. Which approach would you recommend for Internal reporting?Complete this question by entering your answers in the tabs below.$ 11.80/unit$22,800$ 4,760$14,700Determine the manager's bonus using each approach. Which approach would you recommend for internal reporting? (Roundyour intermediate calculations and final answers to the nearest whole dollar amount.)Required C >

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Description: Please do not give solution in image format thanku Exercise 11-16A (Algo) Variable costing versus absorption costing LO 11-4Campbell Company Incurred manufacturing overhead cost for the year as follows.Direct materialsDirect laborManufacturing overhe

The income statement is prepared using different methods as variable costing and absorption costing.…

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Campbell Company Incurred manufacturing overhead cost for the year as follows. Direct materials Direct labor Manufacturing overhead Variable Fixed ($19.00/unit for 1,200 units) Variable selling and administrative expenses Fixed selling and administrative expenses $ 38.30/unit $ 26.60/unit $ 11.80/unit $22,800 $ 4,760 $14,700 The company produced 1,200 units and sold 700 of them at $180.40 per unit. Assume that the production manager is paid a 2 percent bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for Internal reporting?

Campbell Company Incurred manufacturing overhead cost for the year as follows. Direct materials Direct labor Manufacturing overhead Variable Fixed ($19.00/unit for 1,200 units) Variable selling and administrative expenses Fixed selling and administrative expenses $ 38.30/unit $ 26.60/unit $ 11.80/unit $22,800 $ 4,760 $14,700 The company produced 1,200 units and sold 700 of them at $180.40 per unit. Assume that the production manager is paid a 2 percent bonus based on the company's net income. Required a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. c. Determine the manager's bonus using each approach. Which approach would you recommend for Internal reporting?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Appendix Absorption costing income statement On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable existing concept: Sales (420,000 units) 7,450,000 Variable cost of goods sold: Variable cost of goods manufactured (500,000 units x 14 per unit) 7,000,000 Less ending inventory (80,000 units x 14 per unit) 1,120,000 Variable cost of goods sold 5,880,000 Manufacturing margin 1,570,000 Variable selling and administrative expenses 80,000 Contribution margin 1,490,000 Fixed costs: Fixed manufacturing costs 160,000 Fixed selling and administrative expenses 75,000 235,000 Income from operations 1,255,000 a. Prepare an absorption costing income statement. b. Reconcile the variable costing income from operations of 1,255,000 with the absorption costing income from operations determined in (a).
Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Exercise 11-16A (Algo) Variable costing versus absorption costing LO 11-4 Gibson Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 38.10 /unit Direct labor $ 26.80 /unit Manufacturing overhead Variable $ 10.90 /unit Fixed ($19.00/unit for 1,200 units) $ 22,800 Variable selling and administrative expenses $ 5,390 Fixed selling and administrative expenses $ 15,900 The company produced 1,200 units and sold 700 of them at $182.00 per unit. Assume that the production manager is paid a 2 percent bonus based on the company’s net income. Required Prepare an income statement using absorption costing. Prepare an income statement using variable costing. Determine the manager’s bonus using each approach. Which approach would you recommend for internal reporting?
Required information Exercise 19-3 (Algo) Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Exercise 19-3 (Algo) Part 1a 1a. Assume the company uses absorption costing. Determine its total product cost per unit. Per unit product cost using: Total product cost per unit $ 60 per unit $ 22 per unit $8 per unit $ 528,000 per year $ 11 per unit $ 120,000 per year Absorption costing
es Vijay Company reports the following information regarding its production costs. Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Units produced $ 10.20 per unit $ 20.20 per unit Product cost per unit $ 10.20 per unit $180,400 22,000 units Compute its product cost per unit under variable costing.
Cost Accounting assignment 1) Mixed cost – high-low method analysis Byrnes Company accumulated the following data concerning a mixed cost, using units produced as the activity level. Month Units produced Total cost $14,740 $13,250 March 9,800 8,500 April May 7,000 7,600 8,100 $11,100 $12,000 $12,460 June July a. Compute the variable-cost and fixed cost elements using the high-low method. b. Using the information from your answer to part (a), write the cost formula. c. Estimate the total cost if the company produces 8,000 units.
Vijay Company reports the following information regarding its production costs. Direct materials Direct labor $ 11.00 per unit 2$ 21.00 per unit Overhead costs for the year Variable overhead Fixed overhead 2$ 11.00 per unit $ 270,000 30,e00 units Units produced Compute its product cost per unit under absorption costing. (Round your answer t Product cost per unit
Required information Exercise 6-11 (Algo) Absorption costing and variable costing income statements LO P2 [The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its first year of business. Sales price per unit Units produced this year $ 420 per unit 136,000 units 136,000 units Units sold this year Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor Variable overhead: Fixed overhead Exercise 6-11 (Algo) Part 1 1. Prepare the current-year income statement using variable costing. Sales Less: Variable expenses Income $ 32 per unit $4,700,000 per year $ 60 per unit $82 per unit $ 48 per unit $ 10,744,000 per year Exercise 6-11 (Algo) Part 2 OAK MART Income Statement (Variable Costing) Income $ 57,120,000 2. Prepare the current-year income statement using absorption costing. OAK MART Income Statement (Absorption Costing) 0
S ipped Book erences Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Mercon $ 10.00 Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced $ 3.00 0.20 10,000 These products are customized to some degree for specific customers. Wurcon $ 8.00 $ 3.75 0.25 40,000 Required: 1. The company's manufacturing overhead costs for the year are expected to be $336,000. Using the company's conventional costing system, compute the unit product costs for the two products. 2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: 1.…
Ch. 10-Dell, Inc. makes a product with the following standard costs: Direct materials Direct labor Variable overhead 4.00per ounce 11.00per hour 4.00per hour The company reported the following results concerning this product in June. Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Standard Quantity or Hours Standard Price or Rate 7.1ounces 0.2hours 0.2hours D) $440 F C) $660 U A) $440 U $ $ $ B) $660 F Standard Cost Per Unit 3000units 21,500ounces 21,500ounces 560hours S $ The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for June is: S 28.40 2.20 0.80
Question 4.1 For its overhead costs, the wholesale distributor Janz Company uses activity-based costing. In terms of the company's annual overhead costs and its activity-based costing system the following data has been provided: Overhead Costs: Wages and salaries $380,000 Non-wage expenses 90,000 Total $470,000 Distribution of Resource Consumption: Activity Cost Pools Filling Orders Product Support Other Total Wages and salaries 20% 65% 15% 100% Non-wage expenses 25% 15% 60% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. Shown below is the amount of activity for the year: Activity Cost Pool Filling orders Product support Annual Activity 3,100 orders 32 products Not applicable Other Instructions: Compute the activity rates for the Filling Orders and Product Support activity cost pools.