Question

In: Statistics and Probability

1a. Does the level of production affect income under either costing method? Explain your findings. Production...

1a. Does the level of production affect income under either costing method? Explain your findings.

	Production Level	Production Level	Production Level
	100,000	90,000	80,000
Absorption	$___768,000__________	$___915,000_________	$_1,063,750_____
Variable	$___705,000___________	$___845,000________	$__985,000____

1b. What about the chart pictured?

1. What is the title for the X-axis?
1. What is the title for the Y-axis?
2. What does data range A represent?
1. What does data range B represent?
1. Why do the two data ranges cross?
1. What would be a good title for this chart?

Expert Solution

(1a)

The level of production affects income under both the costing methods (i) Absorbing Costing method and (ii) Variable Costing method.

Explanation:

(i) For Absorbing Costing method:

When the Production Level decreases from 100,000 to 80,000, income increases from $768,000 to $1,063,750

(i) For Variable Costing method:

When the Production Level decreases from 100,000 to 80,000, income increases from $705,000 to $985,000

(1b)

The chart can be pictured by Multiple Line Graphs to represent the variation of Amount with respect to both the costing methods (i) Absorbing Costing method and (ii) Variable Costing method. as the level of production decreases from 100,000 to 80,000.

(i) the title for the X-axis: the level of production

(ii) the title for the Y-axis : Amount

(iii) data range A represent :Absorbing Costing method:

(iv): data range B represent: Variable Costing method:

(v) The two data ranges cross at a point at which the Amount for both the methods are same.

(vi) Tile of this chart: Variation of Amount with respect to both the costing methods as per variation of the level of production.

orchestra answered 1 year ago

Under full costing, how does increasing production increase income? Does this work under variable costing? Why...

Under full costing, how does increasing production increase income? Does this work under variable costing? Why or why not?

Under NY law, a partnership’s income is allocated based on either (1) a method of accounting...

Under NY law, a partnership’s income is allocated based on either (1) a method of accounting that is “to the satisfaction of the commissioner” or (2) an allocation using a three-factor formula comprising property, payroll and receipts of the partnership from instate and out-of-state sources. True or False

15-2: At a production level of 100 units, the per unit cost under Absorption Costing is...

15-2: At a production level of 100 units, the per unit cost under Absorption Costing is $8, which consists of $2 of direct materials, $2 of direct labor, $2 of variable manufacturing overhead, and $2 of fixed manufacturing overhead. Calculate the Absorption Costing per unit cost assuming the production level is increased to 200 units? 15-3: Hank’s Hot Dog Factory manufactures hot dogs. The factory’s cost structure is as follows: fixed manufacturing costs per month are $8,000. Variable manufacturing costs...

Test the following hypotheses and interpret your findings. Hypothesis Sample Findings Sample Size Confidence Level Your...

Test the following hypotheses and interpret your findings. Hypothesis Sample Findings Sample Size Confidence Level Your Test Results Your Findings Mean: 7.5 Std. Dev.: 1.2 Mean: 8.5 670 95% Percent: 86% p = 95% 1000 99% Mean: 125 Std. Dev.: 15 135 500 95% Percent: 33% p = 31 120 99%

(a) In the Solow Model, how does the saving rate affect the steady-state level of income?...

(a) In the Solow Model, how does the saving rate affect the steady-state level of income? How does it effect the steady-state rate of growth? Discuss. (b) Why an economic policymaker choose the Golden rule level of capital? (c) How does the rate of population growth affect the steady-state level of income? Does it affect the steady-state rate of growth? (d) How can the policy maker influence a nation’s saving rate? Explain

Xiangling Company’s income under absorption costing was P42,600 higher than its income under variable costing. The...

Xiangling Company’s income under absorption costing was P42,600 higher than its income under variable costing. The company sold 15,000 units during the year, and its variable costs were P18 per unit, P4 of which represents the variable selling expense. The ending inventory is 11,600 units. Fixed selling and administrative expense is P35,000. If production cost was P20 per unit under absorption costing, then 1. How much is the fixed factory overhead per unit? 2. What is the beginning inventory units?...

1a .What is Human Capital? Explain. How does increasing the level of Human Capitalacross the nation...

1a .What is Human Capital? Explain. How does increasing the level of Human Capitalacross the nation improve Economic Growth in terms of the GDP, job growth, andsocial progress? Include a detailed description and definition of any terms or concepts you are using in your explanations. Your explanation should include a properly labeled graph. 1b How does Human Capital augment the other forms of spending in Growth Policy?In other words, why is Human Capital a necessary component of long term progress,...

1.Explain the difference between variable and full costing. 2.Explain why income calculated under full absorption costing...

1.Explain the difference between variable and full costing. 2.Explain why income calculated under full absorption costing will be greater than income calculated under variable costing when production exceeds sales. Explain how a manufacturing company can "bury" fixed manufacturing costs in ending inventory under full absorption costing. 3.If the fixed manufacturing overhead cost per unit under full costing is multiplied by the change in inventory between the beginning and ending of the period, what does the resulting number represent?

Required information Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive...

Required information Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO P2, P3 [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2018 2019 Sales ($46 per unit) $ 966,000 $ 1,886,000 Cost of goods sold ($31 per unit) 651,000 1,271,000 Gross margin 315,000 615,000 Selling and administrative expenses 292,500 342,500 Net income...

Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO...

Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO P2, P3 [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2018 2019 Sales ($46 per unit) $ 966,000 $ 1,886,000 Cost of goods sold ($31 per unit) 651,000 1,271,000 Gross margin 315,000 615,000 Selling and administrative expenses 292,500 342,500 Net income $ 22,500...