Question 1

Heather Inc has the following information for its first year of operations:  a. Prepare Heather's full absorption costing income statement.
b. Prepare Heather's variable costing income statement.

Accepted Answer

The answer of Heather Inc has the following information for...

Question 2

Aspen Inc has the following information for its first year of operations:  a. Prepare Aspen's full absorption costing income statement.
b. Prepare Aspen's variable costing income statement.

Accepted Answer

The answer of Aspen Inc has the following information for...

Question 3

Lavender Inc has the following information for its first year of operations:  a. Prepare Lavender's full absorption costing income statement.
b. Prepare Lavender's variable costing income statement.

Accepted Answer

The answer of Lavender Inc has the following information for...

Question 4

Acme Company sold 900 units for $110 each. Variable costs were $75 per unit and total fixed expenses were $22,000. Prepare a contribution margin income statement.

Accepted Answer

The answer of Acme Company sold 900 units for $110...

Question 5

Campbell, Inc. sold 100,000 units last year for $2.00 each. Variable costs per unit were $0.30 for direct materials, $0.50 for direct labor, and $0.30 for variable overhead. Fixed costs were $60,000 in manufacturing overhead and $40,000 in nonmanufacturing costs.
a. What is the total contribution margin?
b. What is the unit contribution margin?
c. What is the contribution margin ratio?
d. If sales increase by 20,000 units, by how much will profits increase?

Accepted Answer

The answer of Campbell, Inc. sold 100,000 units last year...

Question 6

Paige Inc has the following information for its first year of operations:  a. Prepare Paige's full absorption costing income statement.
b. Prepare Paige's variable costing income statement.

Accepted Answer

The answer of Paige Inc has the following information for...

Question 7

Laurel Company sold 500 units for $450 each. Variable costs were $280 per unit, and total fixed expenses were $53,000. Prepare a contribution margin income statement.

Accepted Answer

The answer of Laurel Company sold 500 units for $450...

Quiz 5: Cost Behavior and Estimation

Heather Inc has the following information for its first year of operations: a. Prepare Heather's full absorption costing income statement. b. Prepare Heather's variable costing income statement.

Aspen Inc has the following information for its first year of operations: a. Prepare Aspen's full absorption costing income statement. b. Prepare Aspen's variable costing income statement.

Lavender Inc has the following information for its first year of operations: a. Prepare Lavender's full absorption costing income statement. b. Prepare Lavender's variable costing income statement.

Acme Company sold 900 units for $110 each. Variable costs were $75 per unit and total fixed expenses were $22,000. Prepare a contribution margin income statement.

Paige Inc has the following information for its first year of operations: a. Prepare Paige's full absorption costing income statement. b. Prepare Paige's variable costing income statement.

Laurel Company sold 500 units for $450 each. Variable costs were $280 per unit, and total fixed expenses were $53,000. Prepare a contribution margin income statement.