Denton Company manufactures and sells a single product. Cost data for the product are given:
Variable costs per unit:
Direct materials $7
Direct labor 10
Variable manufacturing overhead 5
Variable selling and administrative 3
Total variable cost per unit $25
Fixed costs per month:
Fixed manufacturing overhead $315,000
Fixed selling and administrative 245,000
Total fixed cost per month $560,000
The product sells for $60 per unit. Production and sales data for July and August, the first two months of operations, follow:
Units produced Units sold
July 17,500 15,000
August 17,500 20,000
The company's Accounting Department has prepared absorption costing income statements for July and August as presented below:
July August
Sales $900,000 $1,200,000
Cost of goods sold 600,000 800,000
Gross margin 300,000 400,000
Selling and administrative expenses 290,000 305,000
Net operating income $10,000 $95,000
Required:
Determine the unit product cost under:
1. Absorption costing.
2. Variable costing.
3. Prepare contribution format variable costing income statements for July and August.
4. Reconcile the variable costing and absorption costing net operating income figures.
Answers: 3
Business, 22.06.2019 02:30
Acompany factory is considered which type of resource a.land b.physical capital c.labor d.human capital
Answers: 2
Business, 22.06.2019 02:50
Seattle bank’s start-up division establishes new branch banks. each branch opens with three tellers. total teller cost per branch is $96,000 per year. the three tellers combined can process up to 90,000 customer transactions per year. if a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. if the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. required what is the relevant range of activity for new branch banks
Answers: 2
Business, 22.06.2019 04:00
Don’t give me to many notifications because it will cause you to lose alot of points
Answers: 1
Business, 22.06.2019 09:00
Asap describe three different expenses associated with restaurants. choose one of these expenses, and discuss how a manager could handle this expense.
Answers: 1
Denton Company manufactures and sells a single product. Cost data for the product are given:
Variab...
Biology, 26.07.2019 22:40
Mathematics, 26.07.2019 22:40
Mathematics, 26.07.2019 22:50
History, 26.07.2019 22:50
English, 26.07.2019 22:50
English, 26.07.2019 22:50
Mathematics, 26.07.2019 22:50
Mathematics, 26.07.2019 22:50
History, 26.07.2019 22:50
Chemistry, 26.07.2019 22:50
Mathematics, 26.07.2019 22:50