MANAGERIAL ACCOUNTING FOR MANGER CONNEC
6th Edition
ISBN: 9781266809132
Author: Noreen
Publisher: MCG
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Chapter 4A, Problem 4A.2E
Super-Variable Costing and Variable Costing Unit Product Costs and Income Statements L04—2, LO4—6
Lyons Company manufactures and sells one product. The following information pertains to the company’s first year of operations:
The company does not incur any variable
Required:
- Assume the company uses super-variable costing:
- Compute the unit product cost for the year.
- Prepare an income statement for the year.
- Assume the company uses a variable costing system that assigns $12.50 of direct labor cost to each unit produced:
- Compute the unit product cost for the year.
- Prepare an income statement for the year.
- Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net operating incomes.
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Required information
[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West
regions. The following information pertains to the company's first year of operations in which it produced 46,000 units and
sold 42,000 units.
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 expense
Break even point
$ 25
$ 20
The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its
fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and the
remaining $38,000 is a common fixed expense. The company will continue to incur the total amount of its fixed
manufacturing…
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.…
Problem 6-18 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1,
LO6-2]
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of
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 expenses
During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, It
produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of
the company's product is $52 per unit.
Required:
1. Compute the company's break-even point in unit sales.
2. Assume the company uses varlable costing:
a. Compute the unit product cost for Year 1, Year 2, and Year 3.
b. Prepare an income statement for Year…
Chapter 4A Solutions
MANAGERIAL ACCOUNTING FOR MANGER CONNEC
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