SMG AC 222 Lecture Notes - Lecture 1: Income Statement, Cost Driver, Fixed Cost

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emeraldsardine611

21 Mar 2016

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Y(total mix cost)=k (total ixed cost)+ b(variable cost per unit of acivity) *x. Variable cost unit=(y2-y1)/ (x2-x1) = (change in cost)/ (change in acivity) Fixed cost= total cost- variable cost unit * aciviies. Cost at highest measured volume cost at lowest volume =vc/unit. Total fc = total cost at one of the two volumes (vc/u * that volume) =esimiated oh cost ( oh)/ esimated total amount applied wip) 3, actual oh-total applied =under/over oh: cost of manufactured (dr-cr)-cogs(cr-dr) Breakeven net operating income contribution margin sale-vc) Change in cm=cm raio * change in sale. Proit= cm raio * sales fixed expenses. Change in proit= cm raio* change in sale change in fixed cost. 2 ixed cost: increased net operaing income. 2 expected sale volume sale * cmu( cm unit) . 3, present sale volume * cmu ( : expected cm present cm= changing proit/ loss. Ixed vc 4 ixed cost . Unit sales to break even= fixed cost/ cm unit.

Related Questions

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:

Variable manufacturing overhead

20,200

Fixed manufacturing overhead

31,900

Total manufacturing overhead

52,100

Variable selling expense

14,600

Fixed selling expense

23,200

Total selling expense

37,800

Variable administrative expense

5,300

Fixed administrative expense

27,600

Total administrative expense

32,900

3. With respect to cost classifications for manufacturers:

a. What is the total manufacturing cost?

b. What is the total nonmanufacturing cost?

c. What is the total conversion cost and prime cost?


3a.	Total manufacturing cost
3b.	Total nonmanufacturing cost
3c.	Total conversion cost
	Total prime cost

tancricket142


Beginning inventory	0
Units produced	49,000
Units sold	44,000
Selling price per unit	$81
Selling and administrative expenses:
Variable per unit	$2
Fixed (total)	$562,000
Manufacturing costs:
Direct materials cost per unit	$18
Direct labor cost per unit	$9
Variable manufacturing overhead cost perunit	$4
Fixed manufacturing overhead cost(total)	$980,000

Assume that the company uses variable costing.

(a)	Determine the unit product cost. (Omit the "$" sign in your response.)

Unit product cost

(b)	Prepare a contribution format income statement for May. (Input all amounts as positive values. Omit the "$" sign in yourresponse.)


(Click to select)Variable manufacturing costsBeginninginventorySalesEnding inventoryGoods available for sale		$
Variable expenses:
(Click to select)Goodsavailable for saleVariable cost of goods soldSalesEndinginventoryVariable selling and administrative expenses	$
(Click to select)SalesVariableselling and administrative expensesGoods available for saleEndinginventoryVariable cost of goods sold
(Click to select)Variable manufacturingcostsContribution marginFixed manufacturing overheadBeginninginventoryEnding inventory
Fixed expenses:
(Click to select)Goodsavailable for saleFixed manufacturing overheadFixed selling andadministrative expensesSalesEnding inventory
(Click to select)SalesFixedmanufacturing overheadFixed selling and administrativeexpensesGoods available for saleEnding inventory
(Click to select)Net operating incomeNet operatingloss		$

peachraccoon113

The information below representsthe beginning and ending inventory amounts along with theproduction and sales for the month in umbrella units

Beginning Inventory: 0 Umbrellas

Production: 80,000 Umbrellas

Sales: 60,000 Umbrellas

Ending Inventory: 20,000 Umbrellas

The Hampshire Company manufactures umbrellas that sell for$12.50 each. In 2014, the company made and sold 60,000 umbrellas.The company had fixed manufacturing costs of $216,000. It also hadfixed costs for administration of $79,525. The per-unit costs ofeach umbrella are as follows:

Using the information

Prepare a variable costing income statement.

Prepare an absorption costing income statement.

Direct Materials: $3.00

Direct Labor: $1.50

Variable Manufacturing Overhead:$0.40

Variable Selling Expenses: $1.10

Requirement 1
Hampshire Company
Variable Costing IncomeStatement

	Units	$

Sales	X	$		$
Variable Cost of Goods Sold:
Beginning Inventory			$
Direct Materials	X	$	$
Direct Labor	X	$	$
Manufacturing Overhead	X	$	$
Total Variable Costs			$

Cost of Good Available for Sale			$
Deduct Ending Inventory	X	$	$
Variable Costs of GoodsSold				$
Variable Selling Costs	X	$	$	$
Contribution Margin				$
Fixed Costs:
Fixed Manufacturing Costs				$
Fixed Administrative Costs				$
Operating Income				$


Requirement 2
Hampshire Company
Absorption Costing IncomeStatement

	Units	$
Sales	X	$		$
Variable Cost of Goods Sold:
Beginning Inventory			$
Direct Materials	X	$	$
Direct Labor	X	$	$
Manufacturing Overhead	X	$	$
Total Variable Costs			$
Allocated Fixed Manufacturing Costs	X	$	$
Cost of Good Available for Sale			$
Deduct Ending Inventory	X	$	$
Costs of GoodsSold				$

Gross Margin				$
Fixed Costs:
Variable Selling Costs	X	$		$
Fixed Administrative Costs				$
Operating Income				$

chocolatetiger709

SMG AC 222 Lecture Notes - Lecture 1: Income Statement, Cost Driver, Fixed Cost

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