Variable Costing Income StatementOn July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept:Sales (25,000 units)$1,700,000Cost of goods sold:Cost of goods manufactured$1,312,500Less ending inventory (5,000 units)218,750Cost of goods sold1,093,750Gross profit$606,250Selling and administrative expenses141,000Income from operations$465,250a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $90,000 and the variable selling and administrative expenses were $64,000. In your computations, round unitcosts to two decimal places and round final answers to the nearest dollar.Rhys CompanyIncome Statement-Variable CostingFor the Month Ended July 31Sales1,700,000Variable cost of goods sold:Variable cost of goods manufacturedLess ending inventoryVariable cost of goods soldManufacturing marginVariable selling and administrative expensesContribution marginFixed costs:Fixed manufacturing costsFixed selling and administrative expensesIncome from operations b. Reconcile the absorption costing income from operations of $465,250 with the variable costing income from operations determined in (a).Reconciliation of Absorption and Variable CostingIncomeAbsorption costing income from operations $Variable costing income from operationsDifference

Name: Variable Costing Income StatementOn July 31, the end of the first mon
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Variable Costing Income StatementOn July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept:Sales (25,000 units)$1,700,000Cost of goods sold:Cost of goods manuf

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

Business

Accounting

a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $90,000 and the variable selling and administrative expenses were $64,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.

a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $90,000 and the variable selling and administrative expenses were $64,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Cool Pool has these costs associated with production of 25,164 units of accessory products: direct materials, $76; direct labor, $116; variable manufacturing overhead, $11; total fixed manufacturing overhead, $755,691. What is the cost per unit under the variable method? Round to the nearest penny, two decimal places.
Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each prod-uct. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities.2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome.3. What if activities 1, 2, 5, and 8 each had a cost of $650,000 and the remaining activities hada cost of $50,000? Calculate the cost assigned to Wafer A by a fully specified ABC systemand then by an approximately relevant ABC approach. Comment on the implications forthe approximately relevant approach.
Identifying the Parts of the Cost Formula; Calculating Monthly, Quarterly, and Yearly Costs Using a Cost Formula Based on Monthly Data Gordon Company's controller, Eric Junior, estimated the following formula, based on monthly data, for overhead cost: Overhead Cost = $150,000+ ($52 x Direct Labor Hours) Required: 1. Select the term in the right column that corresponds to the term in the left column. Overhead cost $150,000 $52 Direct labor hours
The total prime cost of a product was OMR3,900. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct labor cost per hour. The fixed manufacturing overhead was OMR2,500. Assuming that direct labor hours were 400 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost? Select one: O a. OMR25,900 O b. OMR6,400 O c. OMR25,000 O d. OMR23,400 O e. OMR10,900
XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$95,000 + $9×DLH; R-square = 0.90]; [Y= $120,000 + $5xMhr; R-square = 0.10]; [Y=190,000+2Q; R-square=0.55]. How much of the variations on the overhead costs is explained by %3D the machine hours (Mhr)? Select one: a. 55% b. None of the answers given c. 90% d. 45%
What is the answer is correct?!!
Using the line of best fit determine the company's fixed cost per month and the variable cost per unit, use 5,00 units. Show this information on a scatter diagram. Units Total Production cost 3,500 230,000 3,750 250,000 3,800 260,000 3,400 220,000 5,800 340,000 5,500 330,000 2,900 200,000 3,300 210,000 3,600 240,000 5,900 380,000 5,600 350,000 5,000 290,000
The total prime cost of a product was OMR3,900. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct labor cost per hour. The fixed manufacturing overhead was OMR2,500. Assuming that direct labor hours were 400 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost? Select one: O a OMR25,900 Ob. OMR23,400 O COMR6,400 d. OMR10,900 e. OMR25,000
need last three requirement , answer in text form please (without image)
Uninder Company uses the high-low method to estimate the cost function. The information for 2017 is provided below: Machine-hours Labor Costs Highest observation of cost driver 550 $22,000 Lowest observation of cost driver 250 $13,000 What is the slope coefficient? Select one: a. $30.00 b. $40.00 c. $43.75 d. $52.00
Please help me
answer with all working like explanation , computation , formulation for all parts with steps answer in text a) Using the High-Low method calculate the fixed cost and the variable rate per unit. Round the variable rate to 2 decimal points. b) Show the cost equation for maintenance expense. c) If the expected production is estimated to be 40,000 units what would be the estimated maintenance expense be?