Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 6, Problem 6.56BE
1.
To determine
To prepare: The income statements for the year using absorption costing and the variable costing.
To find:
a. product cost per unit using absorption costing
b. product cost per unit using variable costing
c. ending inventory balance using absorption costing
d. ending inventory balance using variable costing
e. cost of goods sold using absorption costing
f. cost of goods sold using variable costing
g. operating income using absorption costing
h. operating income using variable costing
2.
To determine
To find: The reason for the difference in operating income under absorption costing method and the variable costing method.
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E-LEARNING SYSTEM (ACADEMIC)
E-LEARNING SERVICES
SQU LIBRARIES -
The correct answer is: Objectivity and verifiability
Company XYZ is currently producing AND selling 10,000 units of product A. At this level, the total
product cost was $60,000. This included $10,000 direct materials, $20,000 direct labor and
$30,000 manufacturing overhead cost, which included 20% fixed manufacturing overhead cost.
The selling and administrative expenses were $100,000, which included $60,000 variable selling
and administrative costs. Assume that the selling price per unit $20, how much was the total
contribution margin?
O a. $134,000
O b. $194,000
O c.
None of the given answers
O d. $104,000
O e.
$86,000
The correct answer is: $86,000
A period cost includes all EXCEPT:
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Quiz One: Att.
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Members of the board of directors of Security Alliance have received the following oper-
P8-50A Prepare and use contribution margin statements for discontinuing a
ine decision (Learning Objective 4)
a
Security Alliance
Product Line Contribution Margin Income Statement
For the Year
Product lines
Industrial
Household
Systems
5.
6 Sales revenue
7 Less cost of goods sold:
Variable
Systems
380,000 $
Company Total
690,000
2$
310,000
8
46,000
32,000
280,000
(2,000) $
78,000
346,000
266,000
Fixed
9.
10 Gross profit
11 Less marketing and administrative expenses:
Variable
66,000
268,000
13
14 Operating income (loss)
15
12
Fixed
63,000
37,000
(102,000) $
69,000
23,000
176,000 $
132,000
60,000
74,000
Members of the board are surprised that the industrial systems product line is losing
money. They commission a study to determine whether the company should discontinue
the line. Company accountants estimate that discontinuing the…
E19-15 Computing and using single plantwide overhead allocation rate
Learning Objective 1
Basic $322,000
Koehler makes handheld calculators in two models: basic and professional.
Koehler estimated $721,000 of manufacturing overhead and 515,000 machine
hours for the year. The basic model actually consumed 230,000 machine hours,
and the professional model consumed 285,000 machine hours.
Compute the predetermined overhead allocation rate using machine hours
(MHr) as the allocation base. How much overhead is allocated to the basic
model? To the professional model?
Chapter 6 Solutions
Managerial Accounting (5th Edition)
Ch. 6 - (Learning Objective 1) A graph of a variable cost...Ch. 6 - (Learning Objective 2) Which of the following is...Ch. 6 - (Learning Objective 2) In the cost equation...Ch. 6 - Prob. 4QCCh. 6 - Prob. 5QCCh. 6 - (Learning Objective 3) Which of the following is...Ch. 6 - Prob. 7QCCh. 6 - (Learning Objective 5) Which of the following is...Ch. 6 - Prob. 9QCCh. 6 - Prob. 10QC
Ch. 6 - Identify cost behavior (Learning Objectives 1 2)...Ch. 6 - Prob. 6.2SECh. 6 - Compute fixed costs per unit (Learning Objective...Ch. 6 - Prob. 6.4SECh. 6 - Predict and graph total mixed costs (Learning...Ch. 6 - Prob. 6.6SECh. 6 - Prepare and analyze a scatterplot (Learning...Ch. 6 - Prob. 6.8SECh. 6 - Use the high-low method (Learning Objective 4)...Ch. 6 - Prob. 6.10SECh. 6 - Prob. 6.11SECh. 6 - Prob. 6.12SECh. 6 - Write a cost equation given regression output...Ch. 6 - Prepare a contribution margin income statement...Ch. 6 - Prepare income statements using variable costing...Ch. 6 - Prepare income statements using variable costing...Ch. 6 - Identify cost behavior graph (Learning Objectives...Ch. 6 - Prob. 6.18SECh. 6 - Prob. 6.19SECh. 6 - Prob. 6.20AECh. 6 - Prepare income statement in two formats (Learning...Ch. 6 - Prob. 6.22AECh. 6 - Prob. 6.23AECh. 6 - Sustainability and cost estimation (Learning...Ch. 6 - Create a scatterplot (Learning Objective 3) Melody...Ch. 6 - Continuation of E6-25A: High-low method (Learning...Ch. 6 - Continuation of E6-25A: Regression analysis...Ch. 6 - Regression analysis using Excel output (Learning...Ch. 6 - Prob. 6.29AECh. 6 - Using the high-low method to predict overhead for...Ch. 6 - Using regression analysis output to predict...Ch. 6 - Performing a regression analysis to predict...Ch. 6 - Prob. 6.33AECh. 6 - Prob. 6.34AECh. 6 - Compare absorption and variable costing (Learning...Ch. 6 - Prepare a contribution margin income statement...Ch. 6 - Prepare a contribution margin income statement...Ch. 6 - Prepare income statements using variable costing...Ch. 6 - Prepare a variable costing income statement given...Ch. 6 - Prob. 6.40AECh. 6 - Prob. 6.41BECh. 6 - Prepare income statement in two formats (Learning...Ch. 6 - Use unit cost data to forecast total costs...Ch. 6 - Prob. 6.44BECh. 6 - Sustainability and cost estimation (Learning...Ch. 6 - Create a scatter plot (Learning Objective 3) Tammy...Ch. 6 - Continuation of E6-46B: High-low method (Learning...Ch. 6 - Prob. 6.48BECh. 6 - Prob. 6.49BECh. 6 - Prob. 6.50BECh. 6 - Using the high-low method to predict overhead for...Ch. 6 - Using regression analysis output to predict...Ch. 6 - Prob. 6.53BECh. 6 - Prob. 6.54BECh. 6 - Prob. 6.55BECh. 6 - Prob. 6.56BECh. 6 - Prob. 6.57BECh. 6 - Prob. 6.58BECh. 6 - Prob. 6.59BECh. 6 - Prepare a variable costing income statement given...Ch. 6 - Prob. 6.61BECh. 6 - Analyze cost behavior at a hospital using various...Ch. 6 - Analyze cost behavior (Learning Objectives 1, 2,...Ch. 6 - Prob. 6.64APCh. 6 - Prob. 6.65APCh. 6 - Prob. 6.66APCh. 6 - Analyze cost behavior at a hospital using various...Ch. 6 - Analyze cost behavior (Learning Objectives 1, 2,...Ch. 6 - Prepare traditional and contribution margin income...Ch. 6 - Prob. 6.70BPCh. 6 - Prob. 6.71BPCh. 6 - Prob. 6.72SCCh. 6 - Cost Behavior in Real Companies Choose a company...Ch. 6 - Ethics of building inventory (Learning Objective...Ch. 6 - Prob. 6.76ACT
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