Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Textbook Question
Chapter 10.B, Problem 1E
EXERCISE 10B-1
Forsyth Company manufactures one product it does not maintain any beginning or ending inventories, and its uses a standard cost system. During die year, the company produced and sold 10,000 units at a price of $135 per unit. Its standard cost per unit produced is S105 and its selling and administrative expenses totaled $235,000. Forsyth does not have any variable
Required:
- When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
- Using Exhibit 10B-5 as a guide, prepare an income statement for the year.
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Q. No. 2: Martinez Company's relevant range of production is 15,000 units to
25,000 units. When it produces and sells 17,500 units, its average costs per unit are
as follows:
Average Cost per
Unit ($)
Selling Price
Direct materials
Direct labor.
Variable manufacturing overhead
Fixed manufacturing overhead.
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
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6.
5.
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Required:
a. For financial accounting purposes, what is the total amount of product costs
incurred to make 17,500 units?
b. If 18,500 units are produced and sold, calculate the variable cost per unit and
total for units produced and sold?
c. If 19,000 units are produced, what is the average fixed manufacturing cost
per unit produced?
d. if 19,500 units are produced, what is the total amount of manufacturing
overhead cost incurred to support this level of production? What is this total
amount expressed on a per unit basis?
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Required information
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Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000
units, its average costs per unit are as follows:
Direct materials
Direct labor
2
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
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Problem 5 (Super-Variable Costing and Variable Costing Unit Product
Costs and Income Statements)
Lyns Company manufactures and sells one product. The following
information pertains to the company's first year of operations:
Variable cost per unit:
Direct materials
Fixed costs per year:
130
P7,500,000
P4,200,000
P1,100,000
Direct labor
Fixed manufacturing overhead
Fixed selling and administrative expenses
The company does not incur any variable manufacturing overhead costs or
variable selling and administrative expenses. During its first year of
operations, Lyns produced 60,000 units and sold 52,000 units. The selling
price of the company's product is P400 per unit.
Required:
1. Assume the company uses super-variable costing:
a. Compute the unit product cost for the year.
b. Prepare an income statement for the year.
2. Assume the company uses a variable costing system that assigns P125.00
of direct labor cost to each unit produced:
a. Compute the unit product cost for the year.
b.…
Chapter 10 Solutions
Managerial Accounting
Ch. 10.A - EXERCISE 10A-1 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A-2 Predetermined Overhead Rate;...Ch. 10.A - Prob. 3ECh. 10.A - EXERCISE 10A-4 Fixed Overhead Variances LO10-4...Ch. 10.A - EXERCISE 10A5 Using Fixed Overhead Variances LO104...Ch. 10.A - EXERCISE 10A-6 Predetermined Overhead Rate LO10-4...Ch. 10.A - EXERCISE 10A-7 Relations Among Fixed Overhead...Ch. 10.A - Prob. 8PCh. 10.A - PROBLEM 10A-9 Applying Overhead; Overhead...Ch. 10.A - PROBLEM 10A-10 Comprehensive Standard Cost...
Ch. 10.A -
PROBLEM 10A-11 Comprehensive Standard Cost...Ch. 10.A - Prob. 12PCh. 10.B - EXERCISE 10B-1 Standard Cost Flows; Income...Ch. 10.B - Prob. 2ECh. 10.B - Prob. 3ECh. 10.B - Prob. 4ECh. 10.B - Prob. 5PCh. 10.B - Prob. 6PCh. 10 - Prob. 1QCh. 10 - Why are separate price and quantity variances...Ch. 10 - 10-3 Who is generally responsible for the...Ch. 10 - The materials price variance can be computed at...Ch. 10 - 10-5 If the materials price variance is favorable...Ch. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - 10-8 What effect, if any, would you expect...Ch. 10 - 10-9 If variable manufacturing overhead is applied...Ch. 10 - 10-10 Why can undue emphasis on labor efficiency...Ch. 10 -
The Excel worksheet form that appears below is to...Ch. 10 - Prob. 2AECh. 10 - Prob. 1F15Ch. 10 - Prob. 2F15Ch. 10 - Prob. 3F15Ch. 10 - Prob. 4F15Ch. 10 - Prob. 5F15Ch. 10 - Prob. 6F15Ch. 10 - Prob. 7F15Ch. 10 - Prob. 8F15Ch. 10 - Prob. 9F15Ch. 10 - Preble Company manufactures one product. Its...Ch. 10 - Prob. 11F15Ch. 10 - Prob. 12F15Ch. 10 - Prob. 13F15Ch. 10 - Prob. 14F15Ch. 10 - Prob. 15F15Ch. 10 - EXERCISE 10-1 Direct Materials Variances LO10-1...Ch. 10 -
EXERCISE 10-2 Direct Labor Variances...Ch. 10 -
EXERCISE 10–3 Variable Overhead Variances...Ch. 10 - EXERCISE 10-4 Direct Labor and Variable...Ch. 10 -
EXERCISE 10-5 Working Backwards from Labor...Ch. 10 - EXERCISE 10-6 Direct Materials and Direct Labor...Ch. 10 - EXERCISE 10-7 Direct Materials Variances LOIO-1...Ch. 10 -
EXERCISE 10-8 Direct Materials and Direct Labor...Ch. 10 -
PROBLEM 10-9 Comprehensive Variance Analysis...Ch. 10 -
PROBLEM 10-10 Multiple Products, Materials, and...Ch. 10 - PROBLEM 10-11 Direct Materials and Direct Labor...Ch. 10 - PROBLEM 10-12 Variance Analysis in a...Ch. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - PROBLEM 10-15 Comprehensive Variance Analysis...Ch. 10 - Prob. 16PCh. 10 - Prob. 17C
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- ces Ас Graw Hill ! Q A Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor N Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced? Average fixed manufacturing cost per unit @ 2 W S #3 X 2.2 E D $ 4 8 B N J 2023-01...0.40 PM 2023-01...2.52 PM 2022-12 A 1 ( ( 9 * K M ) 0 O 3 P commarrow_forwardQuestion 4 Achimota Ltd produces a single product and has the following financial information: Selling Price Cost per unit: Direct Materials Direct Labour Variable Overheads GH¢ 50 15 14 4 Fixed manufacturing overheads are GH¢40,000 per month, production volume is 10,000 units per month and sales is 9,200 units. You are required to: a) Calculate the cost per unit under: i. Absorption costing ii. Marginal costing b) Prepare the income statement of ABC Ltd under: i. Absorption costing technique ii. Marginal costing technique c) Reconcile the profits obtained under (bi) and (bii) d) Explain the reasons for the difference in profits in (c) above.arrow_forwardQUESTION 1 E22.1 E22.1 (LO 1) Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production. Define and classify variable, fixed, and mixed costs. Costs Incurred Production in Units 5,000 10,000 Production Costs Total Cost Cost/Unit Total Cost Cost/Unit Direct materials $8,000 $1.60 $16,000 $1.60 Direct labor 9,500 1.90 19,000 1.90 Utilities 2,000 0.40 3,300 0.33 Rent 4,000 0.80 4,000 0.40 Maintenance 800 0.16 1,400 0.14 Supervisory salaries 1,000 0.20 1,000 0.10 Instructions a. Define the terms variable costs, fixed costs, and mixed costs. b. Classify each cost above as either variable, fixed, or mixed.arrow_forward
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