Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit. Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month The product sells for $47 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Sold 17,000 25,000 July August $3 11 4 1 $ 19 Units Produced 21,000 21,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. $ 126,000 166,000 $ 292,000 July August $ 799,000 $ 1,175,000 408,000 600,000 391,000 183,000 575,000 191,000 $ 208,000 $ 384,000 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.

During the first month of operations ended July 31, Head Gear Inc. manufactured 25,600 hats, of which 24,100 were sold. Operating data for the month are summarized as follows: Line Item Description Amount Amount Sales   $226,540 Manufacturing costs:         Direct materials $138,240       Direct labor 35,840       Variable manufacturing cost 17,920       Fixed manufacturing cost 15,360 207,360 Selling and administrative expenses:         Variable $12,050       Fixed 8,800 20,850 During August, Head Gear Inc. manufactured 22,600 hats and sold 24,100 hats. Operating data for August are summarized as follows: Line Item Description Amount Amount Sales   $226,540 Manufacturing costs:         Direct materials $122,040       Direct labor 31,640       Variable manufacturing cost 15,820       Fixed manufacturing cost 15,360 184,860 Selling and administrative expenses:         Variable $12,050       Fixed 8,800 20,850 Required: Question…

Lindquist Company has the following information for February: Line Item Description Amount Sales $370,000 Variable cost of goods sold 173,900 Fixed manufacturing costs 55,500 Variable selling and administrative expenses 40,700 Fixed selling and administrative expenses 22,200 Determine the following for Lindquist Company for the month of February: Line Item Description Amount a.  Manufacturing margin $fill in the blank 1 b.  Contribution margin $fill in the blank 2 c.  Operating income $fill in the blank 3

Locklear, Inc. reports the following information for the year ended December 31: Units sold Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs 650 units $160 per unit $25 per unit $11 per unit $15 per unit $25 per unit $6 per unit $12,600 per year The operating income calculated using variable costing and absorption costing amounted to $9,100 and $10,300, respectively. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year. OA. $32,500 B. $16,250 C. $17,450 D. $33,150