200091 Lecture Notes - Lecture 8: Google Docs, Sheets And Slides
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Diego Company manufactures one product that is sold for $72 perunit in two geographic regionsâthe East and West regions. Thefollowing information pertains to the companyâs first year ofoperations in which it produced 55,000 units and sold 50,000units. |
Variablecosts per unit: | ||
Manufacturing: | ||
Directmaterials | $ | 23 |
Direct labor | $ | 14 |
Variablemanufacturing overhead | $ | 3 |
Variable sellingand administrative | $ | 5 |
Fixed costs peryear: | ||
Fixed manufacturing overhead | $ | 770,000 |
Fixed selling and administrativeexpenses | $ | 607,000 |
The company sold 37,000 units in the East region and 13,000units in the West region. It determined that $290,000 of its fixedselling and administrative expenses is traceable to the Westregion, $240,000 is traceable to the East region, and the remaining$77,000 is a common fixed cost. The company will continue to incurthe total amount of its fixed manufacturing overhead costs as longas it continues to produce any amount of its only product. |
1.
value:
10.00 points
Required information
Required: | |
1. | What is the unitproduct cost under variable costing? |
2.
value:
10.00 points
Required information
2. | What is the unitproduct cost under absorption costing? |
3.
value:
10.00 points
Required information
3. | What is thecompanyâs total contribution margin under variable costing? |
References
eBook & Resources
WorksheetLearning Objective: 06-01 Explain howvariable costing differs from absorption costing and compute unitproduct costs under each method.Learning Objective: 06-03 Reconcilevariable costing and absorption costing net operating incomes andexplain why the two amounts differ.
Difficulty: 2 MediumLearning Objective: 06-02Prepare income statements using both variable and absorptioncosting.Learning Objective: 06-04 Prepare a segmented incomestatement that differentiates traceable fixed costs from commonfixed costs and use it to make decisions.
Check my work
4.
value:
10.00 points
Required information
4. | What is thecompanyâs net operating income (loss) under variablecosting? |
References
eBook & Resources
WorksheetLearning Objective: 06-01 Explain howvariable costing differs from absorption costing and compute unitproduct costs under each method.Learning Objective: 06-03 Reconcilevariable costing and absorption costing net operating incomes andexplain why the two amounts differ.
Difficulty: 2 MediumLearning Objective: 06-02Prepare income statements using both variable and absorptioncosting.Learning Objective: 06-04 Prepare a segmented incomestatement that differentiates traceable fixed costs from commonfixed costs and use it to make decisions.
Check my work
5.
value:
10.00 points
Required information
5. | What is thecompanyâs total gross margin under absorption costing? |
References
eBook & Resources
WorksheetLearning Objective: 06-01 Explain howvariable costing differs from absorption costing and compute unitproduct costs under each method.Learning Objective: 06-03 Reconcilevariable costing and absorption costing net operating incomes andexplain why the two amounts differ.
Difficulty: 2 MediumLearning Objective: 06-02Prepare income statements using both variable and absorptioncosting.Learning Objective: 06-04 Prepare a segmented incomestatement that differentiates traceable fixed costs from commonfixed costs and use it to make decisions.
Check my work
6.
value:
10.00 points
Required information
6. | What is thecompanyâs net operating income (loss) under absorptioncosting? |
References
eBook & Resources
WorksheetLearning Objective: 06-01 Explain howvariable costing differs from absorption costing and compute unitproduct costs under each method.Learning Objective: 06-03 Reconcilevariable costing and absorption costing net operating incomes andexplain why the two amounts differ.
Difficulty: 2 MediumLearning Objective: 06-02Prepare income statements using both variable and absorptioncosting.Learning Objective: 06-04 Prepare a segmented incomestatement that differentiates traceable fixed costs from commonfixed costs and use it to make decisions.
Check my work
7.
value:
10.00 points
Required information
7. | What is the amountof the difference between the variable costing and absorptioncosting net operating incomes (losses)? |
⢠Alvin and Kelly are married and want to file a joint return. â¢Alvin and Kelly have a seven-year-old son named Connor. Connorlived with his parents the entire year. ⢠Alvin, Kelly, and Connorhave valid Social Security numbers that allow them to work and wereissued by the due date of the return. ⢠Alvin and Kelly are notqualifying children of any other person. ⢠Alvin was deployed toSyria and entered a combat zone on April 20, 2018 and returned tothe U.S on March 3, 2019. ⢠Alvin and Kelly elect NOT to includecombat pay in the calculation of their earned income credit. â¢Alvin has rental property, which he placed into service in 2016 â¢Rental property: â Alvin is an active participant. â Single familyresidence, 3571 Oak Street, Your City, Your State. â Purchasedproperty: 06/03/2009. â Rented: 1/1/2018 - 12/31/2018. â Annualrental income: $12,000. â Insurance: $1,000. â Management fees:$1,200. â Alvin paid $450 to replace a broken doorbell, showerhead, leaky faucet and unclog drains. He learned how to completethese repairs after watching Do-ItYourself videos on the internet.He estimates his time for completing the repairs is worth $1,000,which is equivalent to professional electrician and plumber laborcost. â Real estate property tax: $1,500. â Mortgage Interest:$3,840. â Depreciation: $2,200. â Alvin did not make any paymentsthat would require him to file Form 1099. 104 Military Scenarios â¢Alvin and Kelly did not itemize last year and do not have enoughdeductions to itemize this year. ⢠Each member of the Blackburnfamily had health insurance for the entire year through a TRICAREplan that meets the Affordable Care Act requirement for minimumessential coverage.
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⢠Alvin and Kelly are married and want to file a joint return. â¢Alvin and Kelly have a seven-year-old son named Connor. Connorlived with his parents the entire year. ⢠Alvin, Kelly, and Connorhave valid Social Security numbers that allow them to work and wereissued by the due date of the return. ⢠Alvin and Kelly are notqualifying children of any other person. ⢠Alvin was deployed toSyria and entered a combat zone on April 20, 2018 and returned tothe U.S on March 3, 2019. ⢠Alvin and Kelly elect NOT to includecombat pay in the calculation of their earned income credit. â¢Alvin has rental property, which he placed into service in 2016 â¢Rental property: â Alvin is an active participant. â Single familyresidence, 3571 Oak Street, Your City, Your State. â Purchasedproperty: 06/03/2009. â Rented: 1/1/2018 - 12/31/2018. â Annualrental income: $12,000. â Insurance: $1,000. â Management fees:$1,200. â Alvin paid $450 to replace a broken doorbell, showerhead, leaky faucet and unclog drains. He learned how to completethese repairs after watching Do-ItYourself videos on the internet.He estimates his time for completing the repairs is worth $1,000,which is equivalent to professional electrician and plumber laborcost. â Real estate property tax: $1,500. â Mortgage Interest:$3,840. â Depreciation: $2,200. â Alvin did not make any paymentsthat would require him to file Form 1099. 104 Military Scenarios â¢Alvin and Kelly did not itemize last year and do not have enoughdeductions to itemize this year. ⢠Each member of the Blackburnfamily had health insurance for the entire year through a TRICAREplan that meets the Affordable Care Act requirement for minimumessential coverage.
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