A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price P125 Units in beginning inventory Units produced Units sold Units in ending inventory 1,000 800 200 Variable costs per unit: Direct materials P39 Direct labor P15 Variable manufacturing overhead Variable selling and administrative P6 P9 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative P25,000 P4,000

Q: Which one of the following statement best describe the unit variable cost: Select one: O a. Remains…

A: The Question has covered the concept of Variable Cost. The cost which is increases with level output…

Q: Operating profit is affected by changes in production under both the variable costing and absorption…

A: Operating profit is profit earned by the company from its primary or core purpose of the business.…

Q: a) What effect does an increase in volume on each of the following: 1) Unit fixed costs 2) Unit…

A: Fixed Cost In a simple term fixed cost which describe as cost which was incurred in the entity which…

Q: The major categories or captions that would appear on an income statement prepared in the variable…

A: Variable Costing - Under Variable Costing all the variable costs are deducted from the sales revenue…

Q: Which of the following ratios indicates the percentage of each sales dollar that is available to…

A: The objective of the question is to identify the correct ratio that indicates the percentage of each…

Q: Which of the following would be included in the cost of a product manufactured according to variable…

A: Variable costing: Variable costing is a method that considers only the variable cost and ignores all…

Q: The amount of a unit’s sales price that helps to cover fixed expenses is its ________.A.…

A: There are two type of costs being incurred in business. One is fixed costs and other is variable…

Q: What is the effect of an increase in activity on the followingitems?a. Total variable costs.b.…

A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…

Q: What is the amount of the income from operations that would be reported on the variable costing…

A: Variable costing income statement: It refers to an income statement that is prepared by a company…

Q: When units produced are less than units sold, how does operating income differ between variable…

A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…

Q: What are the differences between a company using absorption costing and variable costing when they…

A: Absorption Costing : It is one of the methods of calculation of product costs. Under this method,…

Q: On an income statement prepared using variable costing, to calculate contribution margin, a company…

A: The objective of the question is to understand what costs are subtracted from sales to calculate the…

Q: cost which remains constant per unit

A: Variable costs are costs that change according to the level of activity. But, variable cost per unit…

Q: True or false. economic order quantity occurs where the total cost total annual carrying equals the…

A: EOQ is economic order quantity which is optimal order quantity

Q: SIM Company has computed the following unit costs for the year just ended: Direct material used…

A:

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: What is characteristic of variable costs within the relevant range?   A. Decrease in total as as…

A: Variable costs within the relevant range has following characteristics :- Total variable cost…

Q: What is the purpose of a production report? (AVERAGE FIFO METHOD COSTING)

A: A dashboard that includes a production report makes it easier to monitor the most crucial KPIs from…

Q: Cost           Activity (units) 56                  4 62                  5 80                  7…

A: Introduction: - High-low method is one of the techniques that is used to separate fixed and…

Q: Selling and administrative expenses are considered to be: a. A period cost under variable costing b.…

A: Selling  expenses means the expense incurred while selling the goods like sale men commission , sale…

Q: Can you please explain what we mean by "Short-run" and "long-run" for decision-making in cost…

A: The executive management team of a corporation uses cost accounting to determine all variable and…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Sales…

A: Concept Introduction:   Product costs are the costs which are incurred only when a product is…

Q: On the cost- volume -profit graph , the area between the total cost line and the sales line before…

A: Cost-volume-profit graph represents the sales line, total cost line, variable cost, fixed costs and…

Q: Explain why there is a difference in the operating profit and operating income under the two methods…

A: The product cost in an absorption costing method includes all variable and fixed production…

Q: Data Year 2 Quarter Year 3 Quarter 1 2 3 4. 1 Budgeted unit sales 40,000 60,000 100,000 50,000…

A: Income Statement is a part of financial statement showing the amount of net profit earned by a…

Q: Explain the effect of a decrease in the level of activity (cost driver) on: (i) total fixed cost…

A: Lets understand the basics. Fixed cost are cost which do not change with level of output. In other…

Q: What effect does an increase in volume have on—c. Total fixed costs?

A:

Q: A fixed cost is a cost which O A. remains constant per unit with changes in the level of activity O…

A: Fixed cost is not affected by the changes in the level of activity.

Q: 27.An example of a fixed cost is

A: Fixed costs Fixed costs are those cost which remain fix in total value irrespective of the…

Q: Which of the following cost per unit remains fixed in respect of the volume of production. a.…

A: Some cost do not change with the level of activity of production.

Q: A 1 Chapter 6: Applying Excel 3 Data 4. Selling price per unit 351 5. Manufacturing costs: Variable…

A: Under variable costing    Year 1 Year 2 Sales 877500 877500 Closing stock  90000 60000…

Q: a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were…

A: 1. Closing stock in Variable Costing is calculated on the basis of Variable manufacturing cost only.…

Q: Variable manufacturing overhead costs are treated as period costs under both absorption and variable…

A: Variable manufacturing overhead cost is treated as product cost under both absorption and variable…