Altoona Valve Company’s planned production for the year just ended was 18,300 units. This production level...

Altoona Valve Company’s planned production for the year just ended was 18,300 units. This production level was achieved, and 20,500 units were sold. Other data follow:


Direct material used	$	549,000
Direct labor incurred		287,310
Fixed manufacturing overhead		373,320
Variable manufacturing overhead		177,510
Fixed selling and administrative expenses		307,440
Variable selling and administrative expenses		92,415
Finished-goods inventory, January 1		3,100	units

The cost per unit remained the same in the current year as in the previous year. There were no work-in-process inventories at the beginning or end of the year.

Required:

1.	What would be Altoona Valve Company’s finished-goods inventory cost on December 31 under the variable-costing method? (Do not round your intermediate calculations.)
	Finished-goods inventory cost

2-a.	Which costing method, absorption or variable costing, would show a higher operating income for the year?


	Variable costing Absorption costing

2-b.	By what amount? (Do not round your intermediate calculations.)

Difference in reported income

Expert Solution

ekkarill92 answered 1 year ago

Easton Pump Company’s planned production for the year just ended was 18,200 units. This production level...

Easton Pump Company’s planned production for the year just ended was 18,200 units. This production level was achieved, and 21,800 units were sold. Other data follow: Direct material used $ 562,380 Direct labor incurred 291,200 Fixed manufacturing overhead 393,120 Variable manufacturing overhead 191,100 Fixed selling and administrative expenses 303,940 Variable selling and administrative expenses 91,910 Finished-goods inventory, January 1 4,500 units The cost per unit remained the same in the current year as in the previous year. There were no...

Easton Pump Company’s planned production for the year just ended was 18,400 units. This production level...

Easton Pump Company’s planned production for the year just ended was 18,400 units. This production level was achieved, and 20,700 units were sold. Other data follow: Direct material used $ 570,400 Direct labor incurred 270,480 Fixed manufacturing overhead 388,240 Variable manufacturing overhead 178,480 Fixed selling and administrative expenses 309,120 Variable selling and administrative expenses 107,640 Finished-goods inventory, January 1 3,200 units The cost per unit remained the same in the current year as in the previous year. There were no...

Easton Pump Company’s planned production for the year just ended was 18,600 units. This production level...

Easton Pump Company’s planned production for the year just ended was 18,600 units. This production level was achieved, and 21,500 units were sold. Other data follow: Direct material used $ 569,160 Direct labor incurred 262,260 Fixed manufacturing overhead 405,480 Variable manufacturing overhead 176,700 Fixed selling and administrative expenses 327,360 Variable selling and administrative expenses 97,650 Finished-goods inventory, January 1 3,900 units The cost per unit remained the same in the current year as in the previous year. There were no...

Emerson Corporation just completed its first year of operations. Planned and actual production equaled 17,000 units,...

Emerson Corporation just completed its first year of operations. Planned and actual production equaled 17,000 units, and sales totaled 15,300 units at $107 per unit. Cost data for the year are as follows: Direct material (per unit) $ 21 Conversion cost: Direct labor 544,000 Variable manufacturing overhead 459,000 Fixed manufacturing overhead 544,000 Selling and administrative costs: Variable (per unit) 23 Fixed 356,900 Required: Compute the company’s total cost for the year assuming that variable manufacturing costs are driven by the...

Standards (for a planned level of production of 2,200 units per month) Direct Materials: Yards per...

Standards (for a planned level of production of 2,200 units per month) Direct Materials: Yards per costume12.50yards,, Price per yard $26.00average Direct Labor: D.L. Hours per costume 62.00hours,, D.L. Rate per hour $44.50average Variable MOH standard rate per direct labor hour $4.35per D.L. hour,,Fixed MOH standard rate per direct labor hour $9.47per D.L. hour,,Total Budgeted Fixed MOH (for 1 month) $ 1,250,000 Actual cost and data from the current month: Actual number of yards of materials purchased 28,500 Actual cost...

Q1. XXX Co. uses absorption (full) costing, and the planned production level and sale level is...

Q1. XXX Co. uses absorption (full) costing, and the planned production level and sale level is at 10,000 units per month. Given estimated unit cost for: direct material = $20; direct labor = $18; variable manufacturing overhead = $12; fixed manufacturing overhead = $4; variable selling = $2; and fixed selling = $3. Find prime costs, conversion costs, and total production costs. Estimated total variable costs per unit Estimated total fixed cost per unit Assuming the production level of 10,000...

a. How many units are estimated to be sold if Skyline, Inc., has a planned production...

a. How many units are estimated to be sold if Skyline, Inc., has a planned production of 880,000 units, a desired beginning inventory of 130,000 units, and a desired ending inventory of 80,000 units? Estimated sales ____ units b. Each unit requires direct labor of 1.80 hours. The labor rate is $11.00 per hour and next year’s direct labor budget totals $554,400. How many units are included in the production budget for next year? Do not round intermediate computation. ___...

Anniston Co. planned to produce and sell 40,000 units. At that volume level, variable costs are...

Anniston Co. planned to produce and sell 40,000 units. At that volume level, variable costs are determined to be $320,000 and fixed costs are $30,000. The planned selling price is $10 per unit. Anniston actually produced and sold 42,000 units. Using a contribution margin format for each of the two items below. Use the template below for all of these type of problems. You must show how you calculated each number for credit. (a) Prepare a fixed budget income statement...

There is a project with three activites planned for a year (Units are in Rial) (3...

There is a project with three activites planned for a year (Units are in Rial) • ‘Activity A’ with a planned cost of 2100, • ‘Activity B’ with a planned cost of 1500 and • ‘Activity C’ with a planned cost of 2500. • Activity A turned out to be more expensive (with an additional 300). • ‘Activity B’ was done as budgeted. • ‘Activity C’ is not finished within the year, and only 1500 was spent on it. •...

At a production level of 5000 units, the CLE is evaluated at 1.40. If production increases...

At a production level of 5000 units, the CLE is evaluated at 1.40. If production increases to 6,000 units, what will be the percentage change in cash flow from operations?

Question