Question

Caspian Company produced 19,600 units and sold 18,390 during the current year. Under absorption costing, net...

Caspian Company produced 19,600 units and sold 18,390 during the current year. Under absorption costing, net income was $24,100. Fixed overhead was $150,920.

Determine the net income under variable costing.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Overhead rate per unit under absorption costing = Fixed cost / units produced
=$150920/19600
=$7.7
Overhead charged = Units sold * overhead rate
=18390*7.7
=18390*7.7
=141603
Net Income as per variable costing = net income as per absoption costing + overhead as per absoption costing - overhead for the period
=$24100+141603-150920
=$14783
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
10. If units produced = units sold, is the net income under variable costing or absorption...
10. If units produced = units sold, is the net income under variable costing or absorption costing greater?
Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first year of operations...
Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity—at 20,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $ 80,000 Direct labor 101,400 Variable overhead 15,600 Fixed overhead 54,600 Required: 1. Calculate the unit cost for each of these four costs. Round your answers to the nearest cent. Direct Materials Cost $ Direct Labor Cost $...
Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first year of operations...
Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity—at 20,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $ 80,000 Direct labor 101,400 Variable overhead 15,600 Fixed overhead 54,600 Required: 1. Calculate the unit cost for each of these four costs. Round your answers to the nearest cent. Direct Materials Cost $ Direct Labor Cost $...
Assume the following information for a company that produced 10,000 units and sold 9,000 units during...
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 80 Direct labor $ 50 Variable manufacturing overhead $ 10 Sales commission $ 8 Fixed manufacturing overhead $ 295,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? Multiple Choice The absorption costing net operating...
A company produced 50,000 units during it first year of operation. It sold 47,300 units at...
A company produced 50,000 units during it first year of operation. It sold 47,300 units at $15.50 per unit. Direct Materials $128,000 Direct Labor $93,000 Variable Overhead $65,000 Fixed Overhead $51,000 Variable Selling Expenses $1.10 Selling & Admin Costs $154,000 Prepare Absorption and Variable Costing Income Statements
During its first year of operation Mazer Manufacturing Company produced 11,500 units of inventory and sold...
During its first year of operation Mazer Manufacturing Company produced 11,500 units of inventory and sold 2,750 units. Mazer incurred variable product cost of $2.1 per unit and $16,560 of fixed manufacturing overhead costs. The sales price of the products was $11.5 per unit. Determine the amount of gross margin Mazer would report if the company uses absorption costing and net income using variable costing. (Do not round intermediate calculations.)
chp 8 12) Inventory Valuation under Absorption Costing Hansard Company produced 39,310 units during its first...
chp 8 12) Inventory Valuation under Absorption Costing Hansard Company produced 39,310 units during its first year of operations and sold 38,895 at $17 per unit. The company chose practical activity—at 39,310 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $83,650 Direct labor 101,200 Variable overhead 15,800 Fixed overhead 50,300 Required: 1. Calculate the unit cost for each of these four costs. Round your answers to the nearest cent. Unit direct materials cost $ Unit...
Assume a company produced 12,500 units and sold 11,500 units in its first year of operations....
Assume a company produced 12,500 units and sold 11,500 units in its first year of operations. It also reported absorption costing net operating income of $40,000 and variable costing net operating income of $28,000. How much fixed manufacturing overhead per unit must be included in the company’s absorption costing unit product cost? Multiple Choice $10 $12 $14 $16
Exercise 6-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer...
Exercise 6-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 40 per unit Direct labor $ 60 per unit Overhead costs for the year Variable overhead $ 3,000,000 Fixed overhead $ 7,000,000 Selling and administrative costs for the year Variable $ 750,000 Fixed $ 4,750,000 Production and sales for the year...
Exercise 19-9  Income statement under absorption costing and variable costing  P1  P2 Cool Sky reports the following costing data...
Exercise 19-9  Income statement under absorption costing and variable costing  P1  P2 Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit $60 Direct labor per unit $22 Variable overhead per unit $8 Fixed overhead for the year $528,000 Selling and administrative costs Variable selling and administrative cost per unit $11...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT