### Educational Website Content#### Contribution Margin Analysis for Barnes Company**Required Information:***The following information applies to the questions displayed below:*Barnes Company reports the following for its product for its first year of operations:- **Direct Materials:** $30 per unit- **Direct Labor:** $20 per unit- **Variable Overhead:** $11 per unit- **Fixed Overhead:** $60,000 per year- **Variable Selling and Administrative Expenses:** $3 per unit- **Fixed Selling and Administrative Expenses:** $22,000 per yearThe company sells its product for $150 per unit. Compute the contribution margin using variable costing assuming the company (a) produces and sells 2,400 units, and (b) produces 3,000 units and sells 2,400 units.---### Computation of Contribution Margin Using Variable Costing#### Scenario A: 2,400 Units Produced and 2,400 Units Sold- **Sales:** $360,000- **Variable Expenses:** - **Direct Materials:** $72,000 - **Direct Labor:** $48,000 - **Variable Overhead:** $26,400 - **Variable Selling and Administrative Expenses:** Not listed in the table - **Total Variable Expenses:** (These should be summed but figures for Variable Selling and Administrative Expenses are missing) - **Contribution Margin:** $213,600#### Scenario B: 3,000 Units Produced and 2,400 Units Sold- **Sales:** $360,000- **Variable Expenses:** - **Direct Materials:** $90,000 - **Direct Labor:** $60,000 - **Variable Overhead:** $33,000 - **Variable Selling and Administrative Expenses:** Not listed in the table - **Total Variable Expenses:** (These should be summed but figures for Variable Selling and Administrative Expenses are missing) - **Contribution Margin:** $147,000**Note:** The answer is complete but not entirely correct because the given values do not account for all variable expenses such as variable selling and administrative expenses, as indicated by the discrepancy in the contribution margin calculation for both scenarios. ### Analysis of Diagrams- **Table Headings:** The table contains two primary scenarios for analysis—Scenario (a) and Scenario (b). - **Sales Row:** Indicates the total revenue generated from

Name: ### Educational Website Content#### Contribution Margin Analysis for
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: ### Educational Website Content#### Contribution Margin Analysis for Barnes Company**Required Information:***The following information applies to the questions displayed below:*Barnes Company reports the following for its product for its first year

Contribution Margin -Contribution Margin is a profit after deducting variable costs from the sales…

Business

Accounting

Barnes Company reports the following for its product for its first year of operations. Direct materials Direct labor Variable overhead $ 30 per unit $20 per unit $ 11 per unit $ 60,000 per year $3 per unit Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 22,000 per year

Barnes Company reports the following for its product for its first year of operations. Direct materials Direct labor Variable overhead $ 30 per unit $20 per unit $ 11 per unit $ 60,000 per year $3 per unit Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 22,000 per year

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

Bernard Company shows the following manufacturing costs for the first six months of the year: Production in Units Total Costs 1,350 $38,636 1,200 $36,000 1,520 $40,436 2,150 2,590 2,600 January February March April May June Using the high-low method, the total fixed costs are A. $14,900 B. $50,900 C. $23,236 D. $27,664 $48,636 $50,780 $50,900 (Round intermediate calculations to two decimal places, and the final calculation to the nearest dollar.)
Please solve c and d
Calculate and Use Ovrehead Rate During the coming accounting year, Baker Manufacturing, Inc. anticipates the following costs, expenses, and operating data: Direct material (16,000 lb) $80,000 Direct labor (@10/hr) 200,000 Indirect materials 12,000 Indirect labor 22,000 Sales Commissions 34,000 Factory administration 16,000 Nonfactory administrative expenses 20,000 Other manufacturing overhead 80,000 a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours. b. For each item in requirement in requirement a, determine the proper application of manufacuring overhead to Job 63, to which 16 direct labor hours, $150 of direct labor cost, and 40 machine…
The following information pertains to the first year of operation for Crystal Cold Coolers Incorporated: Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($188,500÷2,900 units) Total variable selling expenses ($13 per unit sold) Total fixed general and administrative expenses 2,900 2,500 $355 $ 55 $ 40 $11 $ 65 $ 32,500 $ 63,000 Required: Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the year.
The following information pertains to Vladamir, Inc., for last year: Beginning inventory, units 1,500 Units produced 100,000 Units sold 101,000 Variable costs per unit: Direct materials $8.00 Direct labor $10.00 Variable overhead $1.00 Variable selling expenses $2.00 Fixed costs per year: Fixed overhead $200,000 Fixed selling and administrative expenses $240,000 There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3a. Assume the selling price per unit is $32. Prepare an income statement using variable costing. Vladamir, Inc.Variable-Costing Income StatementFor Last Year…
rker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year lows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($619,080 + 938,000 units) rker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used. Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1,000,000 12,800,000 $ 15,360,000 336,000 $ 4,200,000 $ 1,700,000 $ 393,000 equired: alculate Parker Plastic's direct materials price and quantity variances. Standard Price (Rate) $ 1.30 $13.50 $ 1.30 per square foot per hour per hour Standard Uni Cost $11.70 4.05 0.39 0.66
Subject :- Accounting
subject : Accounting
Ind
Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units: Per Unit Per Year Direct materials $ 75 Direct labor $ 50 Variable manufacturing overhead $ 10 Fixed manufacturing overhead $ 300,000 If the company’s absorption costing net operating income during its first year of operations was $63,000, what was its variable costing net operating income during its first year of operations? Multiple Choice $23,000 $103,000 $3,000 $123,000
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: 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 expenses $ 29 $ 15 $ 6 $ 5 $ 320,000 $ 80,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $59 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between…
The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials $ 390,000 Direct labor 262,000 Variable overhead 231,000 Production was 170,000 units. Fixed manufacturing overhead was $860,000. For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes; direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Variable manufacturing overhead per unit is expected to remain the same. Required A: Prepare a cost estimate for a volume level of 136,000 units of product this year. (Do not round intermediate calculations.) Cost Item This Year’s cost Direct materials _______________ Direct labor…