1
answer
0
watching
121
views
17 Feb 2018

QUESTION# 3 Zhou Inc. has the following cost data for its past year of operations. Zhou Inc. produces tables and sells them for $150 each. You must show all your work in order to receive all the points available.

$$/ Per unit

Variable Costs:

Direct Materials (DM) $25

Direct Labour (DL) $20

Variable Mf’g Overhead $ 5

Variable Selling & Admin $10

Total Variable costs $60

Fixed Costs:

Fixed Mf’g Overhead $360,000

Fixed Selling & Admin $200,000

Total Fixed Costs $560,000

Unit data

Beginning Inventory 0

Units produced 12,000

Units sold 10,000

Required:

1) Calculate the unit cost per table under Variable Costing.

2) Calculate the unit cost per table under Absorption Costing.

3) Prepare a Contribution Margin format Income Statement using Variable Costing.

4) Prepare a Traditional format income statement using Absorption Costing.

5) Explain why the operating incomes were not the same under the different cost flow assumptions? And reconcile the difference in operating income.

For unlimited access to Homework Help, a Homework+ subscription is required.

Reid Wolff
Reid WolffLv2
18 Feb 2018

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in

Related questions

Related Documents

Weekly leaderboard

Start filling in the gaps now
Log in