Variable and Absorption costing and Income Statements
Managerial AccountingProblem 1Variable and Absorption costing and Earnings StatementsWe manufacture and promote Dinner Tables.Manufacturing prices:Mounted overheadVariable overheadDirect laborDirect supplies$300,000$5 per desk$10 per desk$20 per tableBeginning inventoryTables producedTables Sold0 Tables100,00095,000Promoting and administrative prices:FixedVariableThe desk sells for$500,000$15 Per desk offered$100The corporate makes use of absorption costing, calculate the manufacturing value per unit.Absorption Manufacturing Prices Per TablePrepare an absorption costing revenue assertion.Tables R USIncome StatementFor the Month Ended July 31, 20XXAbsorption CostingSalesThe firm makes use of variable costing, calculate the manufacturing value per unit.Variable Manufacturing Prices Per TablePrepare an variable costing revenue assertion.Tables R USIncome StatementFor the Month Ended July 31, 20XXVariable CostingSalesNet incomeProblem 2Use the next knowledge:Exercise Value PoolPurchasingReceivingAssemblingTestingFinishingPacking and shippingEstimatedOverhead$60,00040,000200,00050,000100,00070,000$520,000Variety of UnitsCurlersExpectedUse ofDrivers2007005,0002,00070,0002,000DryersExpectedUse ofDriversTotal Exercise300500 Orders9001,600 Kilos15,00020,000 Variety of Parts3,0005,000 Variety of Exams30,000100,000 D. L. Hours5,0007,000 Cartons50,00040,000Half 1 - Plantwide MOH and Unit costA. Primarily based on the estimated 100,000 direct labor hours and the estimated MOH of $520,000, what would theplantwide software charge be per direct labor hour?B. Get a value PER UNIT for the Roller and Dryer.Apply MOH primarily based in your software charge above, and assume it takes 1 Direct Labor hourfor the Roller, and a pair of Direct Labor hours for the Dryer.ProductsManufacturing CostsDirect Supplies per unitDirect Labor per unitMOH per unitTotal Unit CostCurler$5.00$eight.00Dryer$9.00$16.00Half 2 - Exercise primarily based MOH and Unit CostA. Decide the MOH charge per unit for the Roller and DryerActivity Value PoolPurchasingReceivingAssemblingTestingFinishingPacking and shippingActivity Value PoolEstimatedOverhead÷÷÷÷÷÷÷ExpectedUse ofDriversExpected Use of Driversin totalOrdersPoundsNumber of PartsNumber of TestsD.L. hoursCartonsActivity-BasedOverhead Charge=======OrdersPoundsNumber of PartsNumber of TestsD. L. HoursCartonsCurlerDryerActivityBasedOverheadRatesActivityBasedOverheadRatesExpectedUse ofDriversCostAssignedPurchasingReceivingAssemblingTestingFinishingPacking and shippingTotal prices assignedUnits producedOverhead value per unitB. Get a value PER UNIT for the Roller and Dryer.ProductsManufacturing CostsDirect Supplies per unitDirect Labor per unitMOH per unitTotal Unit CostCurler$5.00$eight.00Dryer$9.00$16.00CostAssignedProblem 3Use the next knowledge:Produced & SoldVariable expense per unitSelling value per unitBlendersCoffee Makers50,00020,000 models$10$20$18$50Mounted prices = $120,000 of which $40,000 will be averted if the blenders should not producedand $50,000 averted if the espresso makers should not produced.1. Put together segmented Earnings assertion separating direct and customary mounted costsBlendersSalesLess: Variable value of products soldContribution marginLess: Direct mounted expensesSegment marginLess: Frequent mounted expensesOperating incomeCoffee MakersTotal