Variable Costing Income Statement for a Service Company The actual and planned data for Underwater University for the Fall term were as follows: Enrollment Tuition per credit hour Credit hours Registration, records, and marketing costs per enrolled student Revenue Variable costs: Registration, records, and marketing costs Instructional costs Actual Total variable costs 4,500 Instructional costs per credit hour Depreciation on classrooms and equipment Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost Contribution margin Depreciation on classrooms and equipment Operating income $120 60,450 $275 Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term Underwater University Variable Costing Income Statement For the Fall Term $64 $825,600

Variable Costing Income Statement for a Service Company The actual and planned data for Underwater University for the Fall term were as follows: Enrollment Tuition per credit hour Credit hours Registration, records, and marketing costs per enrolled student Revenue Variable costs: Registration, records, and marketing costs Instructional costs Actual Total variable costs 4,500 Instructional costs per credit hour Depreciation on classrooms and equipment Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost Contribution margin Depreciation on classrooms and equipment Operating income $120 60,450 $275 Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term Underwater University Variable Costing Income Statement For the Fall Term $64 $825,600

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 18E: Variable costing income statement for a service company The actual and planned data for Underwater...

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Variable costing income statement for a service companyThe actual and planned data for Underwater University for the Fall termwere as follows: EnrollmentTuition per credit hourCredit hoursRegistration, records, and marketing cost per enrolled studentInstructional costs per credit hourDepreciation on classrooms and equipment 4,500$12060,450$275 $64$825,600 4,125$13543,200$275 $60$825,600 Registration, records, and marketing costs vary by the number ofenrolled students, while instructional costs vary by the number of credithours. Depreciation is a fixed cost. A. Prepare a variable costing income statement showing thecontribution margin and operating income for the Fall term.B. Prepare a contribution margin analysis report comparingplanned with actual performance for the Fall term.
Variable Costing Income Statement for a Service Company The actual and planned data for Broadwater Institute & Technical School for the Fall term were as follows: Actual Planned Enrollment Tuition per credit hour Credit hours Line Item Description Revenue Variable costs Registration, records, and marketing costs Registration, records, and marketing costs per enrolled student Instructional costs per credit hour Depreciation on classrooms and equipment $1,875,000 $1,875,000 Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term Broadwater Institute & Technical School Variable Costing Income Statement For the Fall Term Instructional costs Total variable costs Contribution margin Depreciation on classrooms and equipment Operating income Amount 9.200.000 ✓…
Variable Costing Income Statement for a Service Company The actual and planned data for Broadwater Institute & Technical School for the Fall term were as follows: Actual Enrollment Tuition per credit hour Credit hours Line Item Description Revenue Variable costs: Registration, records, and marketing costs Instructional costs. Registration, records, and marketing costs per enrolled student Instructional costs per credit hour Depreciation on classrooms and equipment $1,875,000 Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. Total variable costs Contribution margin Depreciation on classrooms and equipment Operating income 5,000 $115 80,000 $300 $45 Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term. Broadwater Institute & Technical School Variable Costing Income Statement For the Fall Term Amount…
Variable Costing Income Statement for a Service Company The actual and planned data for Underwater University for the Fall term were as follows: Actual Planned Enrollment 4,500 4,125 Tuition per credit hour $120 $135 Credit hours 43,200 60,450 Registration, records, and marketing costs per enrolled student $275 $275 Instructional costs per credit hour $60 $64 Depreciation on classrooms and equipment $825,600 $825,600 Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term.
Variable Costing Income Statement for a Service Company The actual and planned data for Underwater University for the Fall term were as follows: Actual Planned Enrollment 4,500 4,125 Tuition per credit hour $120 $135 Credit hours 60,450 43,200 Registration, records, and marketing costs per enrolled student $275 $275 Instructional costs per credit hour $64 $60 Depreciation on classrooms and equipment $825,600 $825,600 Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term. Underwater University Variable Costing Income Statement For the FalI Term Revenue Variable costs: Registration, records, and marketing costs $ Instructional costs Total variable costs Contribution margin Check My Work Previous Next All work saved. Save and Exit Submit Assignment for…
Obj. 5, 6 EX 20-22 Variable costing income statement and contribution margin analysis for a service company n The actual and planned data for Underwater University for the Fall term were as follows: Actual Planned Enrollment 4,500 4,125 Tuition per credit hour $120 $135 Credit hours 60,450 43,200 Registration, records, and marketing cost per enrolled student $275 $275 Instructional costs per credit hour Depreciation on classrooms and equipment $64 $60 $825,600 $825,600
Summarized data for Backdraft Co. for its first year of operations are as follows: A. Prepare an income statement under absorption costing B. Prepare an income statement under variable costing
Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?
Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. Required: 1. Prepare a scattergraph based on the 10 months of data. Does the relationship appear to be linear? 2. Using the high-low method, prepare a cost formula for the receiving activity. Using this formula, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated? Use the following information for Problems 3-60 and 3-61: Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controllers department, has convinced management that overhead costs can be better estimated and controlled if the fixed and variable components of each overhead activity are known. One such activity is receiving raw materials (unloading incoming goods, counting goods, and inspecting goods), which she believes is driven by the number of receiving orders. Ten months of data have been gathered for the receiving activity and are as follows:
Variable-Costing Income Statement Refer to the data for Osterman Company on the previous page. Required: 1. Calculate the cost of goods sold under variable costing. 2. Prepare an income statement using variable costing. Use the following information for Brief Exercises 3-23 and 3-24: During the most recent year, Osterman Company had the following data:
Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Refer to the information for Pizza Vesuvio on the previous page. Coefficients shown by a regression program for Pizza Vesuvios data are: Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of labor and the variable rate per employee hour. 2. Construct the cost formula for total labor cost. 3. Calculate the budgeted cost for next month, assuming that 675 employee hours are budgeted. (Note: Round answers to the nearest dollar.) Use the following information for Brief Exercises 3-17 through 3-20: Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
Troglodyte University uses activity-based costing to assign indirect costs to academic departments, using three activities. The activity base, budgeted activity cost, and estimated activity-base usage for each activity are identified as follows: Activity Activity Base BudgetedActivity Cost Activity-BaseUsageFacilities Square feet $800,000 80,000 square feetInstruction Number of course sections 1,200,000 600 sectionsStudent services Number of students 290,000 2,500 studentsThe activity-base usage associated with the Archaeology and Geology departments is as follows:Department Facilities Instruction Student ServicesArchaeology 8,000 square feet 8 sections 150 studentsGeology 5,200 square feet 15 sections 200 studentsa. Determine the activity rate for each activity.Activity Activity RateFacilities $ per sq. ft.Instruction $ per section