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 Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: $ 10 $4 $1 $1 $ 340,000 $ 250,000 During the year, the company produced 34,000 units and sold 16,000 units. The selling price of the company's product is $54 per unit. a. Compute the unit product cost. b. Prepare an income statement for the year. Return to ques

During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@$60 per unit) Cost of goods sold (@ $41 per unit) Gross margin Selling and administrative expenses* Net operating income * $3 per unit variable; $246,000 fixed each year. The company's $41 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($378,000 21,000 units) Absorption costing unit product cost $ 7 12 4 18 $ 41 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced Units sold 21,000 16,000 21,000 26,000 Year 1 $ 960,000 656,000 Year 2 $ 1,560,000 1,066,000 304,000 294,000 $ 10,000 494,000 324,000 $ 170,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating Income in Year 1 and In Year 2? 3. Reconcile the absorption costing and the variable costing net…

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. $30 per unit $20 per unit $ 11 per unit 60,000 per year $3 per unit $ 22,000 per year $ Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses The company sells its product for $150 per unit. Compute 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. X Answer is complete but not entirely correct. Contribution margin using variable costing Sales Variable expenses Direct materials Direct labor Variable overhead Contribution margin (a) 2,400 Units Produced and 2,400 Units Sold ✔ $ X X X 360,000 $ 72,000 48,000 X 26,400 X 213,600 $ (b) 3,000 Units Produced and 2,400 Units Sold 360,000✔ 90,000 X 60,000 X 33,000 X 147,000

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