Question

3). A business operated at 100% of capacity during its first month and incurred the following...

3). A business operated at 100% of capacity during its first month and incurred the following costs:

Production costs (17,900 units):
??? Direct materials $173,200
??? Direct labor 237,200
??? Variable factory overhead 260,600
??? Fixed factory overhead 97,300 $768,300
Operating expenses:
??? Variable operating expenses $134,800
??? Fixed operating expenses 46,700 181,500

If 1,800 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet?

a.$67,475

b.$95,511

c.$77,274

d.$81,030

6). If sales totaled $230,307 for the current year (10,967 units at $21 each) and planned sales totaled $152,472 (12,706 units at $12 each), the effect of the unit price factor on the change in sales is a:

a.$77,835 increase

b.$114,354 increase

c.$98,703 increase

d.$98,703 decrease

8). The level of inventory of a manufactured product has increased by 8,453 units during a period. The following data are also available:

Variable Fixed
Unit manufacturing costs of the period $14 $8
Unit operating expenses of the period $4 $3

What would be the effect on income from operations if variable costing is used rather than absorption costing?

a.$67,624 increase

b.$67,624 decrease

c.$92,983 decrease

d.$92,983 increase

13). A business operated at 100% of capacity during its first month and incurred the following costs:

Production costs (19,800 units):
??? Direct materials $180,400
??? Direct labor 229,400
??? Variable factory overhead 261,500
??? Fixed factory overhead 95,600 $766,900
Operating expenses:
??? Variable operating expenses $120,700
??? Fixed operating expenses 47,100 167,800

If 1,500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?

a.$70,811

b.$50,865

c.$58,098

d.$60,000

15).The following data relate to direct labor costs for the current period:

Standard costs 7,300 hours at $11.50
Actual costs 6,200 hours at $10.70

What is the direct labor time variance?

a.$12,650 unfavorable

b.$11,770 favorable

c.$11,770 unfavorable

d.$12,650 favorable

18).The level of inventory of a manufactured product has increased by 8,292 units during a period. The following data are also available:

Variable Fixed
Unit manufacturing costs of the period $12 $6
Unit operating expenses of the period $1 $4

What would be the effect on income from operations if absorption costing is used rather than variable costing?

a.$82,920 decrease

b.$82,920 increase

c.$49,752 increase

d.$49,752 decrease

Homework Answers

Answer #1

Answer

3) c.$77,274

Working

3)

Ending Inventory in unit = 1800 Unit (given)

Under the absorption costing

Unit Product Cost = Direct materials + Direct labor + Variable factory Overhead + Fixed factory Overhead

Unit Product Cost = 173200/17900 + 237200/17900 + 260600/17900 + 97300/17900

Unit Product Cost = 9.68 + 13.25 + 14.56 + 5.44

Unit Product Cost = 42.93

Amount of inventory that would be reported on the absorption costing balance sheet = Ending Inventory in unit * Unit Product Cost

Amount of inventory that would be reported on the absorption costing balance sheet = 1800*42.93

Amount of inventory that would be reported on the absorption costing balance sheet = 77274

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
78 - A business operated at 100% of capacity during its first month and incurred the...
78 - A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,800 units): ??? Direct materials $171,700 ??? Direct labor 222,500 ??? Variable factory overhead 244,200 ??? Fixed factory overhead 93,900 $732,300 Operating expenses: ??? Variable operating expenses $129,800 ??? Fixed operating expenses 42,500 172,300 If 2,000 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance...
A business operated at 100% of capacity during its first month and incurred the following costs:...
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,700 units): Direct materials $183,000 Direct labor 223,400 Variable factory overhead 269,900 Fixed factory overhead 93,800 $770,100 Operating expenses: Variable operating expenses $124,400 Fixed operating expenses 40,600 165,000 If 1,500 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is a. $58,022 b. $55,800 c. $49,007 d. $67,761
A business operated at 100% of capacity during its first month and incurred the following costs:...
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,200 units): Direct materials $179,300 Direct labor 235,500 Variable factory overhead 263,400 Fixed factory overhead 100,100 $778,300 Operating expenses: Variable operating expenses $122,900 Fixed operating expenses 48,000 170,900 If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is a.$88,494 b.$85,956 c.$104,853 d.$74,917
A business operated at 100% of capacity during its first month and incurred the following costs:...
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,000 units):     Direct materials $181,000     Direct labor 235,000     Variable factory overhead 258,500     Fixed factory overhead 95,500 $770,000 Operating expenses:     Variable operating expenses $128,700     Fixed operating expenses 46,900 175,600 If 2,000 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? a.$81,053 b.$84,547 c.$99,537 d.$71,020
A business operated at 100% of capacity during its first month and incurred the following costs:...
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,900 units):     Direct materials $174,200     Direct labor 223,400     Variable factory overhead 253,600     Fixed factory overhead 92,700 $743,900 Operating expenses:     Variable operating expenses $124,200     Fixed operating expenses 49,200 173,400 If 1,500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? a.$58,447 b.$56,073 c.$49,080 d.$69,143
A business operated at 100% of capacity during its first month and incurred the following costs:...
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,500 units): Direct materials $170,900 Direct labor 233,200 Variable factory overhead 245,800 Fixed factory overhead 91,700 $741,600 Operating expenses: Variable operating expenses $123,300 Fixed operating expenses 49,200 172,500 If 2,000 units remain unsold at the end of the month and sales total $1,079,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?...
A business operated at 100% of capacity during its first month and incurred the following costs:...
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,800 units): Direct materials $182,200 Direct labor 221,300 Variable factory overhead 257,400 Fixed factory overhead 103,200 $764,100 Operating expenses: Variable operating expenses $127,200 Fixed operating expenses 45,000 172,200 If 1,800 units remain unsold at the end of the month and sales total $1,057,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?...
A business operated at 100% of capacity during its first month and incurred the following costs:...
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,500 units): Direct materials $178,400 Direct labor 220,000 Variable factory overhead 247,100 Fixed factory overhead 92,200 $737,700 Operating expenses: Variable operating expenses $134,200 Fixed operating expenses 46,800 181,000 If 1,700 units remain unsold at the end of the month and sales total $1,196,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?...
16. A.    A business operated at 100% of capacity during its first month, with the...
16. A.    A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $480,000 Production costs (120 units):     Direct materials $60,000     Direct labor 15,000     Variable factory overhead 27,000     Fixed factory overhead 24,000 126,000 Operating expenses:     Variable operating expenses $5,740     Fixed operating expenses 4,100 9,840 What is the amount of the contribution margin that would be reported on the variable costing income statement? a. $470,160 b. $388,560 c. $479,880 d. $392,660 16. B....
A business operated at 100% of capacity during its first month, with the following results: Sales...
A business operated at 100% of capacity during its first month, with the following results: Sales (117 units) $526,500 Production costs (146 units):    Direct materials $71,022    Direct labor 18,133    Variable factory overhead 31,733    Fixed factory overhead 30,222 151,110 Operating expenses:    Variable operating expenses $6,267    Fixed operating expenses 3,062 9,329 The amount of gross profit that would be reported on the absorption costing income statement is a. $399,138 b. $396,076 c. $405,405 d. $526,354
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT