Question
In: Accounting
Knox Corporation manufactures an item. The cost structure is: Manufacturing Selling & Administrative Variable cost per...
Knox Corporation manufactures an item. The cost structure
is:
Manufacturing Selling & Administrative
Variable cost per unit $100 $30
Total fixed cost $800,000 $203,000
In its first year of operations, Knox Corporation produced
70,000 items and sold 64,000 at $200 each.
Part 1: What is the contribution margin at the end of the
first year of operations under the variable costing method?
Part 2: Which costing method (variable or absorption) will
generate a higher net operating income in Knox Corporation’s first
year of operations and by how much? Hint: See page 6-21
Illustration 6A-5 for Variable Costing model and page 6-20
Illustration 6A-4 for guidance on Absorption Costing model.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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Denton Company manufactures and sells a single product. Cost
data for the product are given:
Variable costs per unit:
Direct materials
$
4
Direct labor
11
Variable manufacturing overhead
4
Variable selling and administrative
2
Total variable cost per unit
$
21
Fixed costs per month:
Fixed manufacturing overhead
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120,000
Fixed selling and administrative...
Given Sales in units 10,000 Variable manufacturing costs per unit 5 Variable administrative costs per unit...
Given
Sales in units
10,000
Variable manufacturing costs per unit
5
Variable administrative costs per unit
2
Fixed manufacturing costs per unit
2
Fixed administrative costs per unit
1
Variable costs
75%
of sales
Selling price per unit?
$2.22
$9.33
$17.50
$20
Given for XM Company the following data for January 20X1.
Direct material purchased and used in production accounted for
$
50000
Units purchased
5000
The standard units
4200
Managers estimate price variance not to exceed +1% of the...
Sales per period 1,000 units Selling price $40 per unit Variable manufacturing cost $12 per unit...
Sales per period 1,000 units
Selling price $40 per unit
Variable manufacturing cost $12 per unit
Selling expenses $5,100 plus 5% of selling price
Administrative expenses $3,000 plus 20% of selling price
note Note that some costs have variable components such as
commissions on sales and shipping costs.
The contribution margin ratio would be: A) 70%. B) 45%. C) 75%.
D) 55%.
13).Sales is $90 per unit; cost of goods sold is $30 per unit; selling and administrative...
13).Sales is $90 per unit; cost of goods sold is $30 per unit;
selling and administrative expenses are $4 per unit and $25,000 per
month. The company produced 500 units. Gross
margin equals:
a).$30,000 b).$45,000 c).$28,000 d).$3,000
14).Estimates: 30,000 labor hours; 1,400 machine hours; $40,000
fixed overhead; $3 variable overhead per labor hour; $4 variable
overhead per machine hour. Total estimated overhead is:
a).$135,600 b).$164,200 c).$95,600 d).$130,000
15).Sarah's Soda applies overhead based on departmental overhead
rates. Job A1 had $3,900...
Below is a potential menu for the stadium’s concession stand. ITEM Selling Price Variable Cost Percent...
Below is a potential menu for the stadium’s concession
stand.
ITEM Selling Price Variable Cost Percent of
Revenue
Hot Dog $3.00 $2.00 15%
Hamburger $4.00 $2.50 15%
French Fries $4.50 $3.25 20%
Pizza $5.00 $4.00 5%
Nachos $4.25 $2.75 10%
Pretzel $2.75 $2.00 15%
Soda/Water $3.00 $1.00 25%
how do you calculate the Fixed cost for each item?
Please define each of the following terms, direct manufacturing item, indirect manufacturing item, variable manufacturing overhead,...
Please define each of the following terms, direct manufacturing
item, indirect manufacturing item, variable manufacturing overhead,
fixed manufacturing overhead, pre-determined manufacturing
overhead, pre-determined manufacturing overhead rate, and the base
for pre-determined manufacturing overhead rate. Then discuss if
predetermined manufacturing overhead rate depends on production
level. Provide examples to clarify and support your argument.
Please provide your answer more than 350 words in word format
only. Please dont copy paste from website or from Chegg post.
Please give examples for each...
Please define each of the following terms, direct manufacturing item, indirect manufacturing item, variable manufacturing overhead,...
Please define each of the following terms, direct manufacturing
item, indirect manufacturing item, variable manufacturing overhead,
fixed manufacturing overhead, pre-determined manufacturing
overhead, pre-determined manufacturing overhead rate, and the base
for pre-determined manufacturing overhead rate. Then discuss if
predetermined manufacturing overhead rate depends on production
level. Provide examples to clarify and support your argument.
Please provide your answer more than 350 words in word format
only. Please dont copy paste from website. Please give examples for
each definition.
Please define each of the following terms, direct manufacturing item, indirect manufacturing item, variable manufacturing overhead,...
Please define each of the following terms, direct manufacturing
item, indirect manufacturing item, variable manufacturing overhead,
fixed manufacturing overhead, pre-determined manufacturing
overhead, pre-determined manufacturing overhead rate, and the base
for pre-determined manufacturing overhead rate. Then discuss if
predetermined manufacturing overhead rate depends on production
level. Provide examples to clarify and support your argument.
Please provide your answer more than 350 words in word format
only. Please dont copy paste from website. Please give examples for
each definition.
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