Question

If variable manufacturing costs are $10 per unit and total fixed manufacturing costs are $631,900, what...

If variable manufacturing costs are $10 per unit and total fixed manufacturing costs are $631,900, what is the manufacturing cost per unit if:

a. 7,100 units are manufactured and the company uses the variable costing concept?

b. 8,900 units are manufactured and the company uses the variable costing concept?

c. 7,100 units are manufactured and the company uses the absorption costing concept?

d. 8,900 units are manufactured and the company uses the absorption costing concept?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution

Answer
Cost per unit
a $   10
b $   10
c $   99
d $   81

Working

In variable costing unit product cost will be equal to variable cost per unit so no matter what production level is, the cost per unit will remain same in variable costing.

In absorption costing cost per unit = Variable cost per unit +Fixed manufacturing cost per unit.

The fixed manufacturing cost remain same and hence when production increase fixed cost per unit decrease andf when production decrease then fixed cost per unit increase

Answer
Cost per unit
a 10
b 10
c =10+(631900/7100)
d =10+(631900/8900)
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
If variable manufacturing costs are $12 per unit and total fixed manufacturing costs are $596,400, what...
If variable manufacturing costs are $12 per unit and total fixed manufacturing costs are $596,400, what is the manufacturing cost per unit if a. 7,100 units are manufactured and the company uses the variable costing concept? $___________ b. 8,400 units are manufactured and the company uses the variable costing concept? $___________ c. 7,100 units are manufactured and the company uses the absorption costing concept? $__________ d. 8,400 units are manufactured and the company used the absorption costing concept? $__________
Fixed manufacturing costs are $42 per unit, and variable manufacturing costs are $126 per unit. Production...
Fixed manufacturing costs are $42 per unit, and variable manufacturing costs are $126 per unit. Production was 89,000 units, while sales were 83,660 units. b. Determine the difference in variable costing and absorption costing operating income. $
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $45 per unit, and variable manufacturing costs are...
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $45 per unit, and variable manufacturing costs are $135 per unit. Production was 105,000 units, while sales were 99,750 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. Variable costing operating income is less than absorption costing. b. Determine the difference in variable costing and absorption costing operating income.
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $39 per unit, and variable manufacturing costs are...
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $39 per unit, and variable manufacturing costs are $117 per unit. Production was 112,000 units, while sales were 105,280 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. b. Determine the difference in variable costing and absorption costing operating income. $
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $56 per unit, and variable manufacturing costs are...
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $56 per unit, and variable manufacturing costs are $168 per unit. Production was 110,000 units, while sales were 103,400 units. a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations. Variable costing income from operations is less than absorption costing. b. Determine the difference in variable costing and absorption costing income from operations. $fill in the blank
The Atalia Corp. sells bicycle helmets for $56 each. The variable manufacturing costs per unit total...
The Atalia Corp. sells bicycle helmets for $56 each. The variable manufacturing costs per unit total $20 per unit (direct material, direct labor and manufacturing overhead). The total fixed manufacturing overhead is $15,000. For selling and administrative costs, variable S&A is $1 per unit and fixed S&A is $25,000. Atalia produced 5,000 units and sold 4,000 units. The absorption costing NOI is _________, and the variable costing NOI is _________
Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. This type of...
Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. This type of income statement includes a computation of manufacturing margin. Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold. Saxon, Inc. Absorption Costing Income Statement For the Year Ended December 31 Sales $1,125,000 Cost of goods sold:   Cost of goods manufactured $800,000   Ending inventory (200,000)     Total cost of goods sold (600,000) Gross...
Variable and Absorption Costing: Chandler Company sells its product for $100 per unit. Variable manufacturing costs...
Variable and Absorption Costing: Chandler Company sells its product for $100 per unit. Variable manufacturing costs per unit are $40, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $16 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2016. During 2016, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or...
At XLT Inc, variable manufacturing costs are $80 per unit, fixed manufacturing overhead costs are $40,000,...
At XLT Inc, variable manufacturing costs are $80 per unit, fixed manufacturing overhead costs are $40,000, and Selling and Administrative expenses are fixed during the period for $15,000. Sales are 4,000 units at a sales price of $95 per unit. Calculate the Net Operating Income using Absorption Costing if production is 8,000 units. $5,000 $55,000 $40,000 $25,000
A company has the same variable costs per unit, the same fixed costs in total, and...
A company has the same variable costs per unit, the same fixed costs in total, and the same selling price in Years 1 and 2. Production and sales volume for the 2 years are as follows: Year 1 Year 2 Production (in units) 50,000 30,000 Sales (in units) 40,000 40,000 The company uses FIFO to cost all inventories. The beginning Finished Goods Inventory for Year 1 was zero. Which year would give the highest net income figure using absorption costing?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT