Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Question
Chapter 6, Problem 6.40AE
1.
To determine
To prepare: The conventional (absorption costing) and contribution margin (variable costing) income statements of the company AG for the year.
2.
To determine
The statement showing higher income and the reason for such higher income
3.
To determine
To explain: The new promotional scheme should be implemented by the company or not.
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E-LEARNING SYSTEM (ACADEMIC)
E-LEARNING SERVICES
SQU LIBRARIES -
The correct answer is: Objectivity and verifiability
Company XYZ is currently producing AND selling 10,000 units of product A. At this level, the total
product cost was $60,000. This included $10,000 direct materials, $20,000 direct labor and
$30,000 manufacturing overhead cost, which included 20% fixed manufacturing overhead cost.
The selling and administrative expenses were $100,000, which included $60,000 variable selling
and administrative costs. Assume that the selling price per unit $20, how much was the total
contribution margin?
O a. $134,000
O b. $194,000
O c.
None of the given answers
O d. $104,000
O e.
$86,000
The correct answer is: $86,000
A period cost includes all EXCEPT:
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S6-15 Prepare income statements using variable costing and absorption
costing with no change in inventory levels (Learning Objective 6)
Dalton's Products manufactures a single product. Cost, sales, and production information
for the company and its single product is as follows:
Selling price per unit is $65
Variable manufacturing costs per unit manufactured (includes direct materials (DM
direct labor [DL and variable MOH) $31
• Variable operating expenses per unit sold $2
• Foxed manufacturing overhead (MOH) in total for the year $208,000
• Fixed operating expenses in total for the year $89,000
• Units manufactured and sold for the year 13,000 units
P10-53B Determine transfer price at a manufacturer under various scenarios (Learning Objective 4) Assume the Small Components Division of Lang Manufacturing produces a video card used in the assembly of a variety of electronic products. The division's manufacturing costs, and variable selling expenses related to the video card are as follows:
Cost per unit
Direct materials
$ 14.00
Direct labor
$ 4.00
Variable manufacturing overhead
$ 8.00
Fixed manufacturing overhead (at current production level)
$ 9.00
Variable selling expenses
$ 10.00
The Computer Division of Lang Manufacturing can use the video card produced by the Small Components Division and is interested in purchasing the video card in-house rather than buying it from an outside supplier. The Small Components Division has sufficient excess capacity with which to make the extra video cards. Because of competition, the market price for this video card is $30 regardless of whether the…
Chapter 6 Solutions
Managerial Accounting (5th Edition)
Ch. 6 - (Learning Objective 1) A graph of a variable cost...Ch. 6 - (Learning Objective 2) Which of the following is...Ch. 6 - (Learning Objective 2) In the cost equation...Ch. 6 - Prob. 4QCCh. 6 - Prob. 5QCCh. 6 - (Learning Objective 3) Which of the following is...Ch. 6 - Prob. 7QCCh. 6 - (Learning Objective 5) Which of the following is...Ch. 6 - Prob. 9QCCh. 6 - Prob. 10QC
Ch. 6 - Identify cost behavior (Learning Objectives 1 2)...Ch. 6 - Prob. 6.2SECh. 6 - Compute fixed costs per unit (Learning Objective...Ch. 6 - Prob. 6.4SECh. 6 - Predict and graph total mixed costs (Learning...Ch. 6 - Prob. 6.6SECh. 6 - Prepare and analyze a scatterplot (Learning...Ch. 6 - Prob. 6.8SECh. 6 - Use the high-low method (Learning Objective 4)...Ch. 6 - Prob. 6.10SECh. 6 - Prob. 6.11SECh. 6 - Prob. 6.12SECh. 6 - Write a cost equation given regression output...Ch. 6 - Prepare a contribution margin income statement...Ch. 6 - Prepare income statements using variable costing...Ch. 6 - Prepare income statements using variable costing...Ch. 6 - Identify cost behavior graph (Learning Objectives...Ch. 6 - Prob. 6.18SECh. 6 - Prob. 6.19SECh. 6 - Prob. 6.20AECh. 6 - Prepare income statement in two formats (Learning...Ch. 6 - Prob. 6.22AECh. 6 - Prob. 6.23AECh. 6 - Sustainability and cost estimation (Learning...Ch. 6 - Create a scatterplot (Learning Objective 3) Melody...Ch. 6 - Continuation of E6-25A: High-low method (Learning...Ch. 6 - Continuation of E6-25A: Regression analysis...Ch. 6 - Regression analysis using Excel output (Learning...Ch. 6 - Prob. 6.29AECh. 6 - Using the high-low method to predict overhead for...Ch. 6 - Using regression analysis output to predict...Ch. 6 - Performing a regression analysis to predict...Ch. 6 - Prob. 6.33AECh. 6 - Prob. 6.34AECh. 6 - Compare absorption and variable costing (Learning...Ch. 6 - Prepare a contribution margin income statement...Ch. 6 - Prepare a contribution margin income statement...Ch. 6 - Prepare income statements using variable costing...Ch. 6 - Prepare a variable costing income statement given...Ch. 6 - Prob. 6.40AECh. 6 - Prob. 6.41BECh. 6 - Prepare income statement in two formats (Learning...Ch. 6 - Use unit cost data to forecast total costs...Ch. 6 - Prob. 6.44BECh. 6 - Sustainability and cost estimation (Learning...Ch. 6 - Create a scatter plot (Learning Objective 3) Tammy...Ch. 6 - Continuation of E6-46B: High-low method (Learning...Ch. 6 - Prob. 6.48BECh. 6 - Prob. 6.49BECh. 6 - Prob. 6.50BECh. 6 - Using the high-low method to predict overhead for...Ch. 6 - Using regression analysis output to predict...Ch. 6 - Prob. 6.53BECh. 6 - Prob. 6.54BECh. 6 - Prob. 6.55BECh. 6 - Prob. 6.56BECh. 6 - Prob. 6.57BECh. 6 - Prob. 6.58BECh. 6 - Prob. 6.59BECh. 6 - Prepare a variable costing income statement given...Ch. 6 - Prob. 6.61BECh. 6 - Analyze cost behavior at a hospital using various...Ch. 6 - Analyze cost behavior (Learning Objectives 1, 2,...Ch. 6 - Prob. 6.64APCh. 6 - Prob. 6.65APCh. 6 - Prob. 6.66APCh. 6 - Analyze cost behavior at a hospital using various...Ch. 6 - Analyze cost behavior (Learning Objectives 1, 2,...Ch. 6 - Prepare traditional and contribution margin income...Ch. 6 - Prob. 6.70BPCh. 6 - Prob. 6.71BPCh. 6 - Prob. 6.72SCCh. 6 - Cost Behavior in Real Companies Choose a company...Ch. 6 - Ethics of building inventory (Learning Objective...Ch. 6 - Prob. 6.76ACT
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