Analyzing Income under Absorption and Variable CostingVariable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units.If an amount is zero, enter "O"a. How much would absorption costing operating income differ between a plan to produce 10,000 units and a plan to produce 15,000 units?141.75 Xb. How much would variable costing operating income differ between the two production plans?136.5 X

a. Compute difference in absorption costing operating income for plan to produce 10,000 units and…

Answered: Analyzing Income under Absorption and…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

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The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of production of product 1, and x2 represents units of production of product 2. Producing one unit of product 1 requires 4 labor-hours, and producing one unit of product 2 requires 6 labor-hours. Currently, 24 labor-hours are available. The cost of labor-hours is already factored into the profit function, but it is possible to schedule overtime at a premium of 5 per hour. a. Formulate an optimization problem that can be used to find the optimal production quantity of products 1 and 2 and the optimal number of overtime hours to schedule. b. Solve the optimization model you formulated in part (a). How much should be produced and how many overtime hours should be scheduled?
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $101 per unit, and fixed manufacturing costs are $128,700. Sales are estimated to be 7,800 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 7,800 units and a plan to produce 9,900 units? b. How much would variable costing operating income differ between the two production plans? $ 0
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $86 per unit, and fixed manufacturing costs are $193,200. Sales are estimated to be 6,900 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 6,900 units and a plan to produce 9,200 units? X b. How much would variable costing operating income differ between the two production plans? ✓
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $86 per unit, and fixed manufacturing costs are $64,800. Sales are estimated to be 5,400 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 5,400 units and a plan to produce 7,200 units? X b. How much would variable costing operating income differ between the two production plans? $ X
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $99 per unit, and fixed manufacturing costs are $215,600. Sales are estimated to be 7,700 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 7,700 units ard a plan to produce 9,800 units? b. How much would variable costing operating income differ between the two production plans? 0 Feedback Check My Work a. Remember that under variable costing, regardless of whether 7,700 units or 9,800 units are manufactured, no fixed manufacturing costs are allocated to the units manufactured. Instead, all fixed manufacturing costs are treated as a period expense. Therefore the change in units times the per unit fixed costs for the greater production level is the difference in income between the two costing methods. b. Remember that since all…
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $85 per unit, and fixed manufacturing costs are $125,400. Sales are estimated to be 5,500 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 5,500 units and a plan to produce 6,600 units? b. How much would variable costing operating income differ between the two production plans? Feedback
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $85 per unit, and fixed manufacturing costs are $106,400. Sales are estimated to be 5,600 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 5,600 units and a plan to produce 7,600 units?$fill in the blank 1 b. How much would variable costing operating income differ between the two production plans?$fill in the blank 2
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $110 per unit, and fixed manufacturing costs are $112,000. Sales are estimated to be 4,200 units. If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar. a. How much would absorption costing income from operations differ between a plan to produce 4,200 units and a plan to produce 5,600 units? b. How much would variable costing income from operations differ between the two production plans?
The net income under variable costing would be: * a. P64,000 b. P60,000 c. P56,000 d. P52,000 The net income under absorption costing would be: * a. The same as the income under variable costing. b. P8,000 greater than the income under variable costing. c. P12,000 greater than the income under variable costing. d. P8,000 less than the income under variable costing.
What level of output (number of units sold) would generate a net income of $15,020 if a product sells for $23.99, has unit variable costs of $7.99, and total fixed costs of $57,805? Round your final answer to the nearest whole number. Your Answer:
5. The unit variable cost is $6.43, unit selling price is $10, total fixed costs are $638.03, and the projected sales are 430 units. Calculate: a. Net income b. Contribution Margin
Bacon Mfg. has provided the following information. Units produced Units sold Selling price per unit Total Manufacturing Costs: Variable Fixed I Total Selling and Administration Variable Fixed 2020 1,000 825 $20.00 2,000 3,000 825 3,000 2021 1,000 875 $20.00 2,000 3,000 875 3,000 What is the difference in operating income between absorption and variable costing for 2021? a. Absorption income is $1,250 greater than variable income. b. Absorption income is $1,250 less than variable income. C. Absorption income is $375 greater than variable income. d. Absorption income is $2,125 greater than variable income.

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