a) Classily each cost element as either fixed, variable, or mixed b) Calculate: ) the variable production cost per unit and the total fixed production overhead. i) The total variable cost per unit and the total fixed costs Hint: Use the high-low method to separate mixed costs into their fixed and variable components. c) Assuming sales of 5,000 units, prepare a contribution margin income statement for the year ended December 31, 2020, detailing the components of total variable costs and total fixed costs, and dearly showing contribution and net income.

a) Classily each cost element as either fixed, variable, or mixed b) Calculate: ) the variable production cost per unit and the total fixed production overhead. i) The total variable cost per unit and the total fixed costs Hint: Use the high-low method to separate mixed costs into their fixed and variable components. c) Assuming sales of 5,000 units, prepare a contribution margin income statement for the year ended December 31, 2020, detailing the components of total variable costs and total fixed costs, and dearly showing contribution and net income.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose that the total cost to produce 200 units of a consumer item is C(200) = $3,315 and that the marginal cost at this production level is C'(200) = 14 dollars per unit made. Use this information to estimate the total cost C(205). Enter the exact integer value of your cost estimate such as 9823 or 12376 for example.
19) Sales Revenue is $ 850000, variable cost is $ 200000 and fixed costs are $ 300000 Required: Net income in to be prepared in the table format.
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Fill in the missing amounts in each of the eight cases below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.) Required: a. Assume that only one product is being sold in each of the four following case situations: b. Assume that more than one product is being sold in each of the four following case situations: Complete this question by entering your answers in the tabs below. Required A Required B Assume that more than one product is being sold in each of the four following case situations: Sales Variable expenses Fixed expenses Net operating income (loss) Contribution margin ratio (percent) $ $ Case 1 442,000 75,060 43 % $ Case 2 198,000 132,660 68,000 % $ Case 3 470,000 82,210 79 % $ Case 4 304,000 94,240 $ (19,240) %
25: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity Budgeted Activity Cost Activity Base Casting $570,000 Machine hours Assembly 80,000 Direct labor hours Inspecting Setup Materials handling 42,000 Number of inspections Number of setups 38,000 23,750 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 6,000 13,000 19,000 Direct labor hours 3,000 2,000 5,000 Number of inspections 600 400 1,000 Number of setups 300 200 500 Number of loads 450 500 950 Units produced 6,000 3,000 9,000
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Compute the product margins for B300 and T500 under the company's traditional costing system. Compute the product margins for B300 and T500 under the activity-based costing system. Prepare a quantitative comparison of the traditional and activity-based cost assignments.
A product has a sales price of $140 and a per-unit contribution margin of $14. What is the contribution margin ratio? Contribution margin ratio
a) Classify each cost as fixed, variable or mixed, using production volume as the cost driver. b) Use the high-low method to separate mixed costs into their fixed and variable components and prepare the cost formula for each of the mixed costs. C. If Green Corridor Company expects a production volume of 30,000 bicycles in the coming quarter, prepare the production cost formula for the quarter and predict the total production cost.
3) Prepare CVP income statements. Olsen Company has the following information available for September 2019. Unit selling price of video game consoles $ 400 Unit variable costs 2$ 275 Total fixed costs $52,000 Units sold 600 Instructions (a) Compute the contribution margin per unit. (b) Prepare a CVP income statement that shows both total and per unit amounts.
a) Compute the selling price per unit in 2019, using the equation method. b) Given the sales of 3,000 units and the selling price calculated in (a), prepare a contribution marginincome statement for the year ended December 31, 2019, detailing the components of total fixed costsand clearly showing contribution and net income. c) Calculate Benoit’s break-even point in units and in sales dollars.
The following activity and cost data that were provided by Hoist Corporation would help in estimating its future maintenance costs: Units Maintenance cost P1,350 7 P1,590 11 P1,920 15 P2,100 Using the least squares regression method to estimates the cost formula, the expected total cost for an activity level of 10 units would be closest to: