Super-Sprite Company produced 45,000 units and sold 41,000 during the current year. Tnder absorption costing, net income was P62,000. Fixed overhead was P225,000. Determine he net income under variable costing.
Q: Aces inc, a manufacturer of tennis rackets, began operations this year. The company produced 6,200…
A: Under variable costing, only variable manufacturing costs (like Direct materials, Direct Labor,…
Q: Salley Corporation produces a single product.Last year, the company had net operating income of…
A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…
Q: Last Year, Omegle Company produced 25,000 juicers and sold 26,500 juicers for P60 each. The actual…
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Q: June Company's actual data for 201A are given as follows: Units produced 25,000 Units sold 24,000…
A: Throughput Costing:-It is also known as "Super variable costing". This costing method considers only…
Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…
A: Definition: Absorption costing: It refers to the method of product costing in which the price of…
Q: NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending…
A:
Q: NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending…
A: Increase in inventory = 18,000 units - 12,000 units = 6,000 units If there is increase in inventory,…
Q: Schwiesow Corporation has provided the following information: Cost per Unit Cost per Period Direct…
A: Total manufacturing overhead cost: This cost means that all cost which is related to the goods…
Q: During the current period, 14,000 units were produced and 12,000 units were sold. Fixed…
A: Under absorption costing, the fixed costs are also treated only for the goods that are sold during…
Q: XYZ Company incurred the following costs for the month of August when it observed an activity level…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Assume the following information for a company that produced and sold 10,000 units during Year 1. It…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
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A: Total Variable cost = DM + DL + Variable OH + Variable S&A Total Variable cost = 150 + 120 + 100…
Q: A company had income of $50,000 using variable costing for a given period. Beginning and ending…
A: Absorption Costing: Absorption costing, also called full costing, is what you are used to under…
Q: A company had income of $50,000 using variable costing for a given period. Beginning and ending…
A: Absorption costing: It is a costing technique or method under which all costs like fixed and…
Q: Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and…
A: Product Costs: Product Costs mean the direct costs incurred for the production of a product. Product…
Q: Razor Ltd had net income of 918,000 based on variable costing. Beginning and ending inventories were…
A: Variable costs: These costs are incurred in conjunction to the volume of goods produced or sold. It…
Q: Truo Corporation produces a single product. Last year, the company had net operating income of…
A: Net operating income under absorption costing = Net operating income under variable costing +…
Q: The following information were obtained from the records of HILO Company: Production in units 8, 000…
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: Bidbid Company manufactures a product with a unit variable cost of OMR 95 and a unit sales price of…
A:
Q: Freshmart Inc. began operations last year when it produced and sold the same nuber of units. This…
A: Fixed overhead cost for 750 units = ($30,000 / 1,000) x 750 = $22,500
Q: During its first year of operations, a company produced 275,000 units and sold 250,000 units. The…
A: Difference between operating income calculated on the absorption costing basis and on the variable…
Q: NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending…
A: Increase in inventory = 18,000 - 12,000 = 6,000 units If there is an increase in inventory, variable…
Q: A company produced 10,000 units and reported the following costs: direct materials, $10 per unit;…
A: variable cost is the concept that is used in generally managerial and cost accounting where the…
Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…
A: Fixed manufacturing overhead cost per unit = Total Fixed manufacturing overhead / Total no. of…
Q: Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000…
A: Formula: Net income = Revenues - expenses Deduction of expenses from revenues derives the net…
Q: NUBD Co. had income of P65,000 using absorption costing for the period. Beginning and ending…
A: Income using variable costing = absorption costing income - (ending inventories - Beginning…
Q: Wonder Woman Company produced 10,000 units and sold 9,000 units. Fixed manufacturing overhead costs…
A: Under absorption costing method, all types of cost are allocated based on the number of units sold.
Q: Schwiesow Corporation has provided the following information: Cost per Cost per Unit Period Direct…
A: Total manufacturing overhead is the sum of fixed manufacturing overhead and the variable…
Q: The Riego company had a net operating income of P85,500 using variable costing and a net operating…
A: Total fixed manufacturing overhead P1,50,000 Production in units 100000 Fixed manufacturing…
Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…
A: Manufacturing costs = Direct materials + Direct labor + Variable manufacturing overhead =…
Q: Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 5,500…
A: Under Absorption costing, total costs either they are fixed or variable these are considered for…
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A: The major difference between marginal costing and absorption costing is treatment for closing stock.…
Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per…
A: Definition: Variable costing: It refers to the method of product costing in which the price of the…
Q: Chris Company produced and sold 1,000 units during its first month of the following cost and…
A: Ans. Selling and Administrative costs are not allocated to the product cost.
Q: The following information is for a company that produced 10,000 units and sold 9,0000 units during…
A: Solution: The difference in variable cost and absorption is that of treatment of fixed manufacturing…
Q: Under absorption costing, a company had the following unit costs when 9,000 units were produced.…
A: In variable costing method only the variable cost of the product are taken in to account like direct…
Q: Exemplar company reported the following information for its first year of operations. Units produced…
A: Cost per unit = Direct materials + direct labor + variable overhead + (Fixed overhead / Units…
Q: Oblivion Corporation produced 10,000 units of Product A during the month of November. Costs incurred…
A: Absorption cost includes all the costing that is associated with production process whereas in…
Q: ABC Company has the following data at the end of its fiscal year: Prime costs…
A: Inventoriable costs of the finished goods = Prime costs + Variable manufacturing overhead + Fixed…
Q: Requirements: a) Calculate unit product cost using absorption costing and variable costing. b)…
A: a) Calculate unit product cost using absorption costing and variable costing: Unit product cost…
Q: [The following information applies to the questions displayed below.] Cool Sky reports the…
A: Absorption costing is a costing technique in which management of company consider all variable and…
Q: Kluber, Inc. had net income of $918,000 based on variable costing. Beginning and ending inventories…
A: Absorption costing is a method of costing where it accounts for all cost in manufacturing. Net…
Q: Under absorption costing, a company had the following per unit costs when 5,000 units were produced.…
A: Product cost includes all the costs undertaken on the product till the time it gets ready for sale.…
Q: During its first year of operations, the McCormick Company incurred the following manufacturing…
A: Fixed overhead per unit = total Fixed overhead/units produced = $240000/30000 units = $8 per unit
Q: Cool Sky reports the following costing data on its product for its first year of operations. During…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: A company had income of P50,000 using variable costing for a given period. Beginning and ending…
A: Solution: Income using variable costing = P50,000 Fixed overhead per unit = P2 per unit Beginning…
Q: Cornet Products, Inc., summarizes the following data for the first year of operations Sales (# of…
A: The variable costing includes the variable costs in the product cost and absorption costing includes…
Q: The following Information relates to a company with a relevant range of activity from 10,000 units…
A: Variable Cost - It is the cost which changes based on the quantity of goods and service produce…
Q: During the month of May, Lorna Corporation sold 1,000 units. The cost per unit for May was as…
A: Net operating income under absorption costing = Net operating income under variable costing +…
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- XYZ Inc. manufactures a component D12, and two main products F45 and P67. The following details relate to each of these items: D12 D45 P67 Selling price ? 146 159 Material cost 10 15 26 Component D12 (bought-in price) ? 25 25 Direct labour 5 10 15 Variable overheads 6 12 18 Total variable cost per unit 21 62 84 Fixed overhead costs: P per annum P per annum P per annum Avoidable* 9,000.00 18,000.00 40,000.00 Non-avoidable 36,000.00 72,000.00 160,000.00 Total 45,000.00 90,000.00 200,000.00 * The avoidable fixed costs are product-specific fixed costs that would be avoided if the product or component were to be discontinued. 1. Assuming that the annual demand for component D12 is 5,000 units and that XYZ Inc. has sufficient capacity to make the component itself, the maximum price that should be paid to an external supplier for 5,000 components per year is 2. Assuming that component D12 is bought from an external supplier for P25.00 per unit, the number of units…Vacation Corporation produces a single product. Data concerning the company's first year of operations appear below: Units produced Units sold Selling price per unit Direct Materials Direct Labor Variable OH Variable selling & administrative Fixed OH Fixed selling & administrative Compute for the difference in net operating income between absorption costing and variable costing for the year. P P P P P 10,000.00 9,000.00 60.00 15.00 5.00 2.00 4.00 P200,000.00 P70,000.00For each of the following independent cases (A through E), compute the missing values in the table: Total Manufacturing Cost Case AB с COE D Prime Cost 6,890 11,650 Conversion Cost 11,620 7,960 20,620 Direct Materials $ 2,110 $ 2,290 1,410 3,310 Direct Manufacturing Labor Overhead 1,160 $ 3,210 1,970 3,620 7,020 3,040 9,370 5,990
- Moratti Inc. has computed the following unit costs for the year just ended: • Direct material used • Direct labor • Variable manufacturing overhead • Fixed manufacturing overhead • Variable selling and administrative cost • Fixed selling and administrative cost $15 21 28 32 13 18 Under absorption costing, the product cost per unit will be: О а. 64$ O b. 96$ О с. 77$ O d. 127$Which of the following is FALSE regarding Variable Costing? O A. Net income will only change if the number of units sold changes. B. If the number of units sold are greater than the number of units produced, a portion of fixed overhead is "deferred." C.Seling and administrative costs are treated as period costs and are expensed as they are incurred. O D. Fixed overhead is treated as a period cost and is expensed as it is incurred. Reset SelectionAssume absorption costing net income is $42000, beginning inventory consists of O units and ending inventory consists of 840 units, the variable overhead rate is $10 per unit, and the fixed overhead rate is $15 per unit. Determine the net income under variable costing. $63000 $54600 $29400 $21000
- What is the amount of the income from operations that would be reported on the variable costing income statement? a. $519,870 Ob. $426,040 Oc. $511,330 Od. $396,930Front Company had net income of $88,500 based on variable costing. Beginning and ending inventories were 2,400 units and 4,400 units, respectively. Assume the fixed overhead per unit was $8.70 for both the beginning and ending inventory. What is net income under absorption costing? Multiple Choice • 89,700 • $29,340 $147,660 S105,900 • S71,100Shown below are units produced and total manufacturing costs for the pastfour months at Minda Manufacturing Corporation: Units Produced Total CostJul 120 P446,000Aug 150 P508,000Sep 180 P638,000Oct 170 P668,000What is Minda's cost formula for total manufacturing costunder the high-lowmethod?
- Vijay Company reports the following information regarding its production costs. Direct materials Direct labor $ 11.00 per unit 2$ 21.00 per unit Overhead costs for the year Variable overhead Fixed overhead 2$ 11.00 per unit $ 270,000 30,e00 units Units produced Compute its product cost per unit under absorption costing. (Round your answer t Product cost per unitThe East Company manufactures several different products. Unit costs associated with Product ORD210 are as follows: Direct materials $54Direct manufacturing labor 8Variable manufacturing overhead 11Fixed manufacturing overhead 25 Sales commissions (2% of sales) 5Administrative salaries 12Total$115What are the period costs per unit associated with Product ORD203 ? Oa. $120 b. $50 c. $17© d $18Zeta Inc. had net income of $918,000 based on variable costing. Beginning and ending inventories were 56,800 units and 55,600 units, respectively. Assume the fixed overhead per unit was $2.15 for both the beginning and ending inventory. What is net income under absorption costing? A.$797,170 B.$912,840 C.$1,038,830 D.$915,420 E.$918,000
