Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 6, Problem 6.8SE
To determine
The variable and fixed cost components of the Company MOL operating costs.
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E-LEARNING SYSTEM (ACADEMIC)
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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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Members of the board of directors of Security Alliance have received the following oper-
P8-50A Prepare and use contribution margin statements for discontinuing a
ine decision (Learning Objective 4)
a
Security Alliance
Product Line Contribution Margin Income Statement
For the Year
Product lines
Industrial
Household
Systems
5.
6 Sales revenue
7 Less cost of goods sold:
Variable
Systems
380,000 $
Company Total
690,000
2$
310,000
8
46,000
32,000
280,000
(2,000) $
78,000
346,000
266,000
Fixed
9.
10 Gross profit
11 Less marketing and administrative expenses:
Variable
66,000
268,000
13
14 Operating income (loss)
15
12
Fixed
63,000
37,000
(102,000) $
69,000
23,000
176,000 $
132,000
60,000
74,000
Members of the board are surprised that the industrial systems product line is losing
money. They commission a study to determine whether the company should discontinue
the line. Company accountants estimate that discontinuing the…
The actual and planned data for Broadwater Institute & Technical School for the Fall term were as follows:
Enrollment
Tuition per credit hour
Credit hours
cost.
Line Item Description
Revenue
Variable 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
Registration, records, and marketing costs $
Instructional costs
Total variable costs
Amount
Contribution margin
Depreciation on classrooms and equipment
Operating income
Actual
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
5,000
$115
$
$
80,000
$300
$45
Planned
4,500
$100
72,000
$300
$40
$1,875,000
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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