Variable Costing Income Statement for a Service Company East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows: Cost Behavior Activity Rate Cost Amount Labor costs for loading and unloading railcars $175,582 Variable $46.00 per railcar Variable 12.40 per train-mile Fuel costs 460,226 Train crew labor costs Variable 7.20 per train-mile 267,228 31.00 per railcar Switchyard labor costs Variable 118,327 Track and equipment depreciation Fixed 194,400 Maintenance 129,600 Fixed $1,345,363 Operating statistics from the management information system reveal the following for April: Atlanta/ Baltimore/ Pittsburgh/ Total Baltimore Pittsburgh Atlanta Number of train-miles 12,835 10,200 14,080 37,115 Number of railcars 425 2,160 1,232 3,817 Revenue per railcar $600 $275 $440 a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin. East Coast Railroad Company Contribution Margin by Route For the Month Ended April 30 Atlanta/Baltimore Baltimore/Pittsburgh Pittsburgh/Atlanta Total Revenues Variable costs: Labor costs for loading and unloading railcars $ Fuel costs Train crew labor costs Switchyard labor costs Total variable costs Contribution margin % Contribution margin ratio b. Evaluate the route performance of the railroad using the report in (a). The route performs significantly worse than do the other two routes. A close examination of the operating statistics indicates that this route runs railcars, combined with fairly total mileage. This combination suggests that the railroad is running many trains on the railroad. That is, the railroad's profitability is sensitive to the size, or length, of the train in railcar terms. QOodddi

Variable and Absorption Costing-Service CompanyReally BC, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Really BC provides a quarterly lawn care service that is sold for $190. The variable and fixed cost data are as follows: Direct labor       $100.00 Overhead         Variable cost per unit       $33.00 Fixed cost (annual)       $100,000 Marketing, general and administrative         Variable cost (per service contract completed)       $34.00 Administrative expenses (fixed- annual cost)       $42,000   During 2016, 10,000 service contracts were signed and 9,500 service contracts were completed. Lawn RX had no service contracts at the beginning of the year. a. Calculate reported income for management.Do not use negative signs with any answers.   Absorption Costing Income Statement Sales       Answer Cost of Goods Sold:         Beginning Inventory     Answer   Variable…

Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin CompanyAbsorption Costing Income StatementFor the Month Ended April 30 Sales (6,600 units)   $178,200    Cost of goods sold:     Cost of goods manufactured (7,700 units) $146,300      Inventory, April 30 (1,100 units) (20,900)     Total cost of goods sold   (125,400)   Gross profit   $52,800    Selling and administrative expenses   (32,280)   Operating income   $20,520    If the fixed manufacturing costs were $39,501 and the fixed selling and administrative expenses were $15,810, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin CompanyVariable Costing Income StatementFor the Month Ended April 30     $Sales Variable cost of goods sold:       $Variable cost of goods manufactured…

Income Statements under Absorption Costing and Variable Costing Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (70,400 units) during the first month, creating an ending inventory of 6,400 units. During February, the company produced 64,000 units during the month but sold 70,400 units at $90 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Manufacturing costs in February 1 beginning inventory: Variable Fixed Total Manufacturing costs in February: Variable Fixed Total Selling and administrative expenses in February: Variable Fixed Total Number of Units Cost of goods sold: 6,400 $36.00 6,400 14.00 64,000 64,000 Unit Cost 70,400 70,400 Total Cost $230,400 89,600 $50.00 $320,000 $36.00 $2,304,000 15.40 985,600 $51.40 $3,289,600 $18.20 $1,281,280 7.00 492,800 $25.20 $1,774,080 a. Prepare an income statement according to the absorption…

A company is considering two mutually exclusive investments with a discount rate of 10%.The cash flows of the projects over time follows:  Time Project A Project B 0 - RM300,000 - RM405,000 1 - RM387,000 RM134,000 2 - RM193,000 RM134,000 3 - RM100,000 RM134,000 4 RM600,000 RM134,000 5 RM600,000 RM134,000 6 RM850,000 RM134,000 7 - RM180,000 RM0 Net Present value given :       Time Project A Project B   Project A Project B 0 -300,000 -405,000 1.0000   (300,000.00)   (405,000.00) 1 -387,000 134,000 0.9091   (351,818.18)     121,818.18 2 -193,000 134,000 0.8264   (159,504.13)     110,743.80 3 -100,000 134,000 0.7513     (75,131.48)     100,676.18 4 600,000 134,000 0.6830    409,808.07       91,523.80 5 600,000 134,000 0.6209    372,552.79       83,203.46 6 850,000 134,000 0.5645    479,802.84       75,639.51 7 -180,000 0 0.5132…

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Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (4,000 units) $2,600,000 Production costs (4,350 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses Sales a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 $ 2,600,000 Cost of goods sold Gross profit 1,800,000 $1,218,000 522,000 87,000 130,500 1,957,500 $ 800,000 $60,000 25,000 85,000

FastTrack Inc. manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March are as follows. (Click to view the data.) The selling price per unit is $3,600. Required 1. Present statements of comprehensive income for January, February, and March under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. Requirement 1a. Present statements of comprehensive income for January, February, and March unde Complete the top half of the statement of comprehensive income for each month first, and then complet January February Revenue Variable costs: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Less: Ending inventory Variable cost of goods sold Variable operating costs Data table Unit data: Beginning inventory Production Sales Variable costs: Print $ 0 1,000 950 Manufacturing…

Variable Costing Income Statement On April 30, the end of the first month of operations, Jopl Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (4,600 units) Cost of goods sold: Cost of goods manufactured (5,200 units) Inventory, April 30 (700 units) Total cost of goods sold Gross profit Selling and administrative expenses Operating income Joplin Company Variable Costing Income Statement For the Month Ended April 30 Variable cost of goods sold: If the fixed manufacturing costs were $29,484 and the fixed selling and administrative expenses were $12,590, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. 1:110 $109,200 (14,700) Fixed costs: $138,000 (94,500) $43,500 (25,700) $17,800

Required:   1. Determine the unit product cost under:   a. Absorption costing.   b. Variable costing.   2. Prepare variable costing income statements for July and August.   3. Reconcile the variable costing and absorption costing net operating incomes.