Question 1

Nurre Corporation manufactures and sells one product. In the company's first year of operations, the variable cost consisted solely of direct materials of $88 per unit. The annual fixed costs were $729,000 of direct labor cost, $1,917,000 of fixed manufacturing overhead expense, and $814,000 of fixed selling and administrative expense. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 27,000 units and sold 22,000 units. The company's only product is sold for $247 per unit.
Required:
a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year.b. Assume that the company uses an absorption costing system that assigns $27 of direct labor cost and $71 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.

Accepted Answer

The answer of Nurre Corporation manufactures and sells one product....

Question 2

Shelko Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 42,000 units and sold 37,000 units. The company's only product is sold for $272 per unit.Required:
a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year.b. Assume that the company uses an absorption costing system that assigns $28 of direct labor cost and $70 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.c. Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.

Accepted Answer

The answer of Shelko Corporation manufactures and sells one product....

Question 3

Guillaume Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 46,000 units and sold 41,000 units. The company's only product is sold for $260 per unit.Required:
a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year.b. Assume that the company uses a variable costing system that assigns $28 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.

Accepted Answer

The answer of Guillaume Corporation manufactures and sells one product....

Question 4

Valcarcel Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 68,000 units and sold 65,600 units. The company's only product is sold for $178 per unit.Required:
a-1. Assume the company uses super-variable costing. Compute the unit product cost for the year.
a-2. Prepare an income statement for the year.
b-1. Assume that the company uses a variable costing system that assigns $16 of direct labor cost to each unit that is produced. Compute the unit product cost for the year.
b-2. Prepare an income statement for the year.
c. Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes.

Accepted Answer

The answer of Valcarcel Corporation manufactures and sells one product....

Question 5

Schubert Corporation manufactures and sells one product. In the company's first year of operations, the variable cost consisted solely of direct materials of $86 per unit. The annual fixed costs were $510,000 of direct labor cost, $2,210,000 of fixed manufacturing overhead expense, and $1,209,000 of fixed selling and administrative expense. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 34,000 units and sold 31,000 units. The company's only product is sold for $232 per unit.
Required:
a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year.b. Assume that the company uses a variable costing system that assigns $15 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.

Accepted Answer

The answer of Schubert Corporation manufactures and sells one product....

Question 6

Dattilio Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 39,600 units and sold 38,200 units. The company's only product is sold for $246 per unit.
Required:a. Assume the company uses super-variable costing. Compute the unit product cost for the year.
b. Assume the company uses super-variable costing. Prepare an income statement for the year.

Accepted Answer

The answer of Dattilio Corporation manufactures and sells one product....

Question 7

Dattilio Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 54,000 units and sold 49,000 units. The company's only product is sold for $238 per unit.
Required:a. Assume the company uses super-variable costing. Compute the unit product cost for the year.
b. Assume the company uses super-variable costing. Prepare an income statement for the year.

Accepted Answer

The answer of Dattilio Corporation manufactures and sells one product....

Question 8

Woodall Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 46,000 units and sold 44,000 units. The company's only product is sold for $235 per unit.Required:
a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year.b. Assume that the company uses a variable costing system that assigns $14 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.c. Assume that the company uses an absorption costing system that assigns $14 of direct labor cost and $56 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.d. Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes.
e. Prepare a reconciliation that explains the difference between the super-variable costing and absorption costing net incomes.

Accepted Answer

The answer of Woodall Corporation manufactures and sells one product....

Question 9

Kneeland Corporation has two divisions: Grocery Division and Convenience Division. The following report is for the most recent operating period:
  The common fixed expenses have been allocated to the divisions on the basis of sales.Required:a. What is the Grocery Division's break-even in sales dollars?b. What is the Convenience Division's break-even in sales dollars?c. What is the company's overall break-even in sales dollars?d. What would be the company's overall net operating income if the company operated at its two division's break-even points?

Accepted Answer

The answer of Kneeland Corporation has two divisions: Grocery Division...

Question 10

Sawicki Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 25,000 units and sold 18,000 units. The company's only product is sold for $224 per unit.
Required:a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year.
b. Assume that the company uses an absorption costing system that assigns $10 of direct labor cost and $62 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.

Accepted Answer

The answer of Sawicki Corporation manufactures and sells one product....

Question 11

Drucker Corporation manufactures and sells one product. In the company's first year of operations, the variable cost consisted solely of direct materials of $84 per unit. The annual fixed costs were $288,000 of direct labor cost, $1,728,000 of fixed manufacturing overhead expense, and $782,000 of fixed selling and administrative expense. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 24,000 units and sold 17,000 units. The company's only product is sold for $249 per unit.
Required:a. Assume the company uses super-variable costing. Compute the unit product cost for the year.
b. Assume the company uses super-variable costing. Prepare an income statement for the year.

Accepted Answer

The answer of Drucker Corporation manufactures and sells one product....

Question 12

Valcarcel Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 31,000 units and sold 25,000 units. The company's only product is sold for $233 per unit.Required:
a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year.b. Assume that the company uses a variable costing system that assigns $13 of direct labor cost to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.c. Prepare a reconciliation that explains the difference between the super-variable costing and variable costing net incomes.

Accepted Answer

The answer of Valcarcel Corporation manufactures and sells one product....

Quiz 6: Variable Costing and Segment Reporting: Tools for Management