Assume the following information for the first year of operations for a company that sells only one product for a price of $48 per uni 19 Variable cost per unit: Direct materials 24 25 Fixed costs per year: points Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses $140,000 $200,000 $ 70,000 8 0031:10 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its fir operations, the company produced 20,000 units and sold 18,000 units. The company wishes to compare a variable costing system that assigns $7.00 of direct labor cost to each unit produced with a super- system. Which of the following statements is true when comparing these two cost systems?

Diego Company manufactures one product that is sold for $72 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 55,000 units and sold 50,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 23 $ 14 $3 $5 $ 770,000 $ 607,000 The company sold 37,000 units in the East region and 13,000 units in the West region. It determined $290,000 of its fixed selling and administrative expense is traceable to the West region, $240,000 is traceable to the East region, and the remaining $77,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Net operating income. Net operating loss 11.…

Grainger Company produces only one product and sells that product for $90 per unit. Cost information for the product is as follows: Direct Material $15 per Unit Direct Labor $26 per Unit Variable Overhead $4 per Unit Fixed Overhead $34,000   Selling expenses are $3 per unit and are all variable. Administrative expenses of $15,000 are all fixed. Grainger produced 5,000 units; sold 4,000; and had no beginning inventory. A. Compute net income under i. Absorption Costing $fill in the blank 1 ii. Variable Costing    $fill in the blank 2 B. Which costing method provide higher net income? By how much? The     method provided more net income by $fill in the blank 4 .

Grainger Company produces only one product and sells that product for $110 per unit. Cost information for the product is as follows: Direct Material $16 per Unit Direct Labor $26 per Unit Variable Overhead $6 per Unit Fixed Overhead $27,200   Selling expenses are $5 per unit and are all variable. Administrative expenses of $20,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no beginning inventory. A. Compute net income under i. Absorption Costing $fill in the blank 1 ii. Variable Costing    $fill in the blank 2 B. Which costing method provide higher net income? By how much? The     method provided more net income by $fill in the blank 4 .