Question

Question 2 In the coming year, Power Company expects to sell 70,000 units of product X...

Question 2

In the coming year, Power Company expects to sell 70,000 units of product X at RM13 each. Power Controller provided the following for the coming year.

Units of production

110,000

Direct material per unit

RM4.50

Direct labour per unit

RM3.00

Variable overhead per unit

RM1.50

Variable selling expenses per unit

RM1.10

Total fixed overhead

RM132,000

Total fixed selling expenses

RM30,000

Total fixed administrative expenses

RM15,000

Required:

(a) Calculate the cost of one unit of product X under absorption costing.

(b) Calculate the cost of one unit of product X under variable costing.

(c) Calculate Power’s net year operating income under absorption costing.

(d) Calculate Power’s next year operating income under variable costing.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Dean Corporation produces and sells a single product. The following data refer to the year...
The Dean Corporation produces and sells a single product. The following data refer to the year just completed:        Beginning inventory 0   Units produced 29,700   Units sold 22,700   Selling price per unit $ 469   Selling and administrative expenses:   Variable per unit $ 20   Fixed (total) $ 522,100   Manufacturing costs:   Direct materials cost per unit $ 206   Direct labor cost per unit $ 53   Variable manufacturing overhead cost per unit $ 37   Fixed manufacturing overhead (total) $ 415,800     Assume that...
During the most recent year, Osterman Company had the following data: Units in beginning inventory ---...
During the most recent year, Osterman Company had the following data: Units in beginning inventory --- Units produced 11,350 Units sold ($50 per unit) 9,400 Variable costs per unit: Direct materials $10 Direct labor $5 Variable overhead $3 Fixed costs: Fixed overhead per unit produced $4 Fixed selling and administrative expenses $138,500 Labels Add: Fixed expenses Less: Fixed expenses Amount Descriptions Contribution margin Cost of goods sold Fixed overhead Fixed selling and administrative expenses Gross margin Operating income Operating loss...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 22 Direct labor $ 17 Variable manufacturing overhead $ 5 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 400,000 Fixed selling and administrative expenses $ 90,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of...
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,010 units and sold 23,900 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,010 units and sold 23,900 units. Production costs for the year were as follows: Direct materials $ 214,674 Direct labor $ 121,842 Variable manufacturing overhead $ 243,684 Fixed manufacturing overhead $ 319,110 Sales totaled $1,159,150 for the year, variable selling and administrative expenses totaled $126,670, and fixed selling and administrative expenses totaled $205,971. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the...
Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0...
Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year 40,000 units Units sold this year 24,000 units Direct materials $ 24 per unit Direct labor $ 26 per unit Variable overhead $ 120,000 in total Fixed overhead $ 200,000 in total 1. Given Advanced Company's data, compute cost of finished goods in inventory under variable costing. Multiple Choice $928,000 $2,320,000 $1,392,000 $848,000 $1,272,000 2.Brush Industries reports the...
The following information applies to the questions displayed below.] Diego Company manufactures one product that is...
The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $73 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 44,000 units and sold 39,000 units. Variable costs per unit: Manufacturing: Direct materials $ 23 Direct labor $ 16 Variable manufacturing overhead $ 2 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing...
Trez Company began operations this year. During this first year, the company produced 100,000 units and...
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. Sales (80,000 units × $45 per unit) $ 3,600,000 Cost of goods sold Beginning inventory $ 0 Cost of goods manufactured (100,000 units × $25 per unit) 2,500,000 Cost of good available for sale 2,500,000 Ending inventory (20,000 × $25) 500,000 Cost of goods sold 2,000,000 Gross margin 1,600,000 Selling and administrative...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 5 Direct labor 11 Variable manufacturing overhead 2 Variable selling and administrative 3 Total variable cost per unit $ 21 Fixed costs per month: Fixed manufacturing overhead $ 144,000 Fixed selling and administrative 160,000 Total fixed cost per month $ 304,000 The product sells for $47 per unit. Production and sales data for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 3 Direct labor 12 Variable manufacturing overhead 2 Variable selling and administrative 3 Total variable cost per unit $ 20 Fixed costs per month: Fixed manufacturing overhead $ 72,000 Fixed selling and administrative 172,000 Total fixed cost per month $ 244,000 The product sells for $53 per unit. Production and sales data for July and August, the first...
In 2018, X Company expects to produce and sell 62,000 units of its only product for...
In 2018, X Company expects to produce and sell 62,000 units of its only product for $34.14. The following are budgeted variable costs per unit: Direct materials $4.98 Direct labor 5.19 Variable overhead 4.78 Variable selling and administrative 5.31 Total 20.26 Budgeted fixed overhead for 2018 is $181,040, and budgeted fixed selling and administrative expenses are $173,600. What is X Company's budgeted contribution margin rate for 2018?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT