1) How do you calculate and incorporate fixed manufacturing overhead cost into cost of goods sold under absorption costing? Do you have to factor in goods produced as well as goods sold for this aspect of cost of goods sold?

2) When comparing variable costing net income and absorption costing net income, how do you know whether you are adding or deducting fixed manufacturing overhead deferred or released from inventory under absorption costing?

1 .Wu Company incurred $40,000 of fixed cost and $50,000 of variable cost when 4,000 units of product were made and sold.

If the company's volume doubles, the company's total cost will:

stay the same.

double as well.

increase but will not double.

decrease.

2 .Hard Nails and Bright Nails are competing nail salons. Both companies have the same number of customers. Both charge the same price for a manicure. The only difference is that Hard Nails pays its manicurists on a salary basis (i.e., a fixed cost structure) while Bright Nails pays its manicurists on the basis of the number of customers they serve (i.e., a variable cost structure). Both companies currently make the same amount of net income. If sales of both salons increase by an equal amount, Hard Nails:

will earn a higher profit than Bright Nails.

will earn a lower profit than Bright Nails.

will earn the same amount of profit as Bright Nails.

The answer cannot be determined from the information provided.

3 The excess of a product's selling price over its variable costs is referred to as:

gross profit

gross margin

contribution margin

manufacturing margin

manufacturing margin

7. Product Cost Method of Product Costing

Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,620 cell phones are as follows:

Voice Com desires a profit equal to a 15% rate of return on invested assets of $598,200.

a. Determine the amount of desired profit from the production and sale of 4,620 cell phones.
$

b. Determine the product cost per unit for the production of 4,620 of cell phones. Round your answer to the nearest whole dollar.
$ per unit

c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.
%

d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.

Business plan for Guest house , describing about Fixed,variable and mixed cost with break even cost, an example describing about Guest house cost structure?

Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function

Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:

Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant.

In your calculations, round the variable rate per employee hour to the nearest cent.

Required:

1. Using the high-low method, calculate the fixed cost of labor.
$

2. Using the high-low method, calculate the variable rate.

$ per employee hour

3. Using the high-low method, construct the cost formula for total labor cost.

Total labor cost = $ + [$ × Employee hours]

Discuss how cost allocation or transfer pricing and activity-base cost applies to banking industry and financial institution. Once you have identified the subject of interest, your post should focus on an assessment of the situation. What do you believe are the key issues? If there are problems, what solutions do you see? If this is a post that illustrates a successful resolution of a challenge, how was this success achieved?

Massey Corporation uses a process cost system and the weighted-average cost flow assumption. Production begins in the Fabricating Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On March 1, the beginning work in process inventory consisted of 20,000 units which were 60% complete and had a cost of $175,000, $145,000 of which were materials costs. During March, the following occurred:

Instructions

Prepare a Process Cost Worksheet.

1. Average Cost for Producing Microwaves

Let the total cost function C(x) be defined as follows.

C(x) = 0.0003x³ − 0.02x² + 103x + 3,600

Find the average cost function C.

C(x) =

Find the marginal average cost function C '.

C '(x) =

2. Marginal Revenue for Producing Loudspeakers

The management of Acrosonic plans to market the ElectroStat, an electrostatic speaker system. The marketing department has determined that the demand for these speakers is represented by the following function, where p denotes the speaker's unit price (in dollars) and x denotes the quantity demanded. Find the following functions (in dollars), find the value (in dollars) and interpret your results.

p = −0.02x + 890      (0 ≤ x ≤ 20,000)

(a)

Find the revenue function R.

R(x) =

(b)

Find the marginal revenue function R'(x).

R'(x) =

(c)

Compute the following value.

R'(8,200) =

Interpret your results.

When the level of production is  units, the production of the next speaker system will bring an additional revenue of  dollars.

3.Marginal Cost, Revenus, and Profit for Producing LCD TVs

A company manufactures a series of 20-in. flat-tube LCD televisions. The quantity x of these sets demanded each week is related to the wholesale unit price p by the following equation.

p = −0.007x + 190

The weekly total cost (in dollars) incurred by Pulsar for producing x sets is represented by the following equation. Find the following functions (in dollars) and compute the following values.

C(x) = 0.000001x³ − 0.02x² + 140x + 75,000

(a)

Find the revenue function R.

R(x) =

Find the profit function P.

P(x) =

(b)

Find the marginal cost function C'.

C'(x) =

Find the marginal revenue function R'.

R'(x) =

Find the marginal profit function P'.

P'(x) =

(c)

Compute the following values. (Round your answers to two decimal places.)

C'(1,500)=R'(1,500)=P'(1,500)=

Manufacturing cost data for Blossom Company, which uses a job order cost system, are presented below.

Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)