Question
In: Accounting
Haas Company manufactures and sells one product. The following information pertains to each of the company�s...
Haas Company manufactures and sells one product. The following information pertains to each of the company�s first three years of operations:
|
Variable costs per unit: |
||
|
Manufacturing: |
||
|
Direct materials |
$30 |
|
|
Direct labor |
$22 |
|
|
Variable manufacturing overhead |
$6 |
|
|
Variable selling and administrative |
$2 |
|
|
Fixed costs per year: |
||
|
Fixed manufacturing overhead |
$ |
540,000 |
|
Fixed selling and administrative expenses |
$ |
240,000 |
During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company�s product is $73 per unit.
|
1. |
Compute the company�s break-even point in units sold. |
|
2. |
Assume the company uses variable costing |
|
a. |
Compute the unit product cost for year 1, year 2, and year 3. |
|
. |
Prepare an income statement for year 1, year 2, and year 3.
|
Solutions
Expert Solution
Hi
Let me know in case you face any issue: Ignore the order of commas in amounts:
ekkarill92 answered 1 year agoRelated Solutions
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following
information pertains to each of the company’s first three years of
operations:
Variable costs
per unit:
Manufacturing:
Direct
materials
$
28
Direct
labor
$
20
Variable
manufacturing overhead
$
4
Variable selling
and administrative
$
3
Fixed costs per
year:
Fixed
manufacturing overhead
$
210,000
Fixed selling
and administrative expenses
$
150,000
During its first year of operations, Haas produced 60,000 units
and sold 60,000 units. During its second year of...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following
information pertains to each of the company’s first three years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
30
Direct labor
$
22
Variable manufacturing overhead
$
6
Variable selling and administrative
$
2
Fixed costs per year:
Fixed manufacturing overhead
$
540,000
Fixed selling and administrative expenses
$
240,000
During its first year of operations, Haas produced 60,000 units
and sold 60,000 units. During its second year of...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following
information pertains to each of the company’s first three years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
24
Direct labor
$
16
Variable manufacturing overhead
$
4
Variable selling and administrative
$
1
Fixed costs per year:
Fixed manufacturing overhead
$
220,000
Fixed selling and administrative expenses
$
140,000
During its first year of operations, Haas produced 40,000 units
and sold 40,000 units. During its second year of...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following
information pertains to each of the company’s first three years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$26
Direct labor
$18
Variable manufacturing
overhead
$6
Variable selling and administrative
$3
Fixed costs per year:
Fixed manufacturing overhead
$
390,000
Fixed selling and administrative
expenses
$
150,000
During its first year of operations, Haas produced 60,000 units
and sold 60,000 units. During...
1). Haas Company manufactures and sells one product. The following information pertains to each of the...
1). Haas Company manufactures and sells one product. The
following information pertains to each of the company’s first three
years of operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
26
Direct labor
$
18
Variable manufacturing overhead
$
6
Variable selling and administrative
$
3
Fixed costs per year:
Fixed manufacturing overhead
$
390,000
Fixed selling and administrative expenses
$
150,000
During its first year of operations, Haas produced 60,000 units
and sold 60,000 units. During its second year...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company
manufactures and sells one product. The following information
pertains to each of the company’s first three years of
operations:
Variable costs
per unit:
Manufacturing:
Direct
materials
$
23
Direct
labor
$
15
Variable
manufacturing overhead
$
6
Variable selling
and administrative
$
1
Fixed costs per
year:
Fixed
manufacturing overhead
$
240,000
Fixed selling
and administrative expenses
$
180,000
During its first year
of operations, Haas produced 60,000 units and sold 60,000 units.
During its second year of...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following
information pertains to each of the company’s first three years of
operations: Variable costs per unit: Manufacturing: Direct
materials $ 25 Direct labor $ 17 Variable manufacturing overhead $
8 Variable selling and administrative $ 3 Fixed costs per year:
Fixed manufacturing overhead $ 150,000 Fixed selling and
administrative expenses $ 90,000 During its first year of
operations, Haas produced 60,000 units and sold 60,000 units.
During its second year of...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following
information pertains to each of the company’s first three years of
operations: Variable costs per unit: Manufacturing: Direct
materials $ 25 Direct labor $ 12 Variable manufacturing overhead $
4 Variable selling and administrative $ 2 Fixed costs per year:
Fixed manufacturing overhead $ 480,000 Fixed selling and
administrative expenses $ 360,000 During its first year of
operations, Haas produced 60,000 units and sold 60,000 units.
During its second year of...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following
information pertains to each of the company’s first three years of
operations: Variable costs per unit: Manufacturing: Direct
materials $ 26 Direct labor $ 18 Variable manufacturing overhead $
9 Variable selling and administrative $ 1 Fixed costs per year:
Fixed manufacturing overhead $ 540,000 Fixed selling and
administrative expenses $ 120,000 During its first year of
operations, Haas produced 60,000 units and sold 60,000 units.
During its second year of...
Haas Company manufactures and sells one product. The following information pertains to each of the company’s...
Haas Company manufactures and sells one product. The following
information pertains to each of the company’s first three years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
20
Direct labor
$
12
Variable manufacturing overhead
$
3
Variable selling and administrative
$
1
Fixed costs per year:
Fixed manufacturing overhead
$
390,000
Fixed selling and administrative expenses
$
210,000
During its first year of operations, Haas produced 50,000 units
and sold 50,000 units. During its second year of...
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