In: Accounting
1.
Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 |
||||
Sales | $1,224,000 | |||
Variable cost of goods sold: | ||||
Variable cost of goods manufactured | $678,500 | |||
Inventory, March 31 | (92,000) | |||
Total variable cost of goods sold | (586,500) | |||
Manufacturing margin | $637,500 | |||
Total variable selling and administrative expenses | (147,900) | |||
Contribution margin | $489,600 | |||
Fixed costs: | ||||
Fixed manufacturing costs | $312,700 | |||
Fixed selling and administrative expenses | 96,900 | |||
Total fixed costs | (409,600) | |||
Operating income | $80,000 |
Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
Variable costing | |
Absorption costing |
2.
Analyzing Income under Absorption and Variable Costing
Variable manufacturing costs are $76 per unit, and fixed manufacturing costs are $218,400. Sales are estimated to be 8,000 units.
If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar.
a. How much would absorption costing operating
income differ between a plan to produce 8,000 units and a plan to
produce 10,400 units?
$
b. How much would variable costing operating
income differ between the two production plans?
$