Absorption costing (over- and under absorbtion) Marginal costing X plc produces one product-cupboards. Each cupboard is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Absorption costing (over- and under absorbtion) Marginal costing X plc produces one product-cupboards. Each cupboard is budgeted to require 4 kg of timber at 3 hours of labour at and variable production overheads of Fixed production overheads are budgeted at average production/sales is estimated to be The selling price is fixed at There is also a variable selling cost of Production Sales Actual selling price $ Fixed selling cost of During the first two months X plc had the following levels of activity: January units 12 000 9 000 2 $ per kg. 3 $ per hour, 4 $ per unit. 43 5 500 40 000 10 000 40 $ per unit. 1 $ per unit and fixed selling cost of February units 2 handles 11 500 12 500 $ per month and units per month. 39 3 500 $ per month. (a)Prepare a cost card using absorption and marginal costing. (b)Set out Actual Income Statements for the months of January and February, using i) absorption costing ii) marginal costing 0,5 $ per each, 4 000 $ per month. c) Compare net profit (MC vs AC) and make a conclusion d) make a variance analysis for Jan/Feb Absorption costing (over- and under absorbtion) Marginal costing X plc produces one product-cupboards. Each cupboard is budgeted to require 4 kg of timber at 3 hours of labour at and variable production overheads of Fixed production overheads are budgeted at average production/sales is estimated to be The selling price is fixed at There is also a variable selling cost of Production Sales Actual selling price $ Fixed selling cost of During the first two months X plc had the following levels of activity: January units 12 000 9 000 2 $ per kg. 3 $ per hour, 4 $ per unit. 43 5 500 40 000 10 000 40 $ per unit. 1 $ per unit and fixed selling cost of February units 2 handles 11 500 12 500 $ per month and units per month. 39 3 500 $ per month. (a)Prepare a cost card using absorption and marginal costing. (b)Set out Actual Income Statements for the months of January and February, using i) absorption costing ii) marginal costing 0,5 $ per each, 4 000 $ per month. c) Compare net profit (MC vs AC) and make a conclusion d) make a variance analysis for Jan/Feb
Expert Answer:
Answer rating: 100% (QA)
a Absorption Costing Direct Materials Timber 4 kg 2kg8 Handles 2 051 Direct Labour 3 hrs 3hr9 Variab... View the full answer
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
Posted Date:
Students also viewed these accounting questions
-
Under absorption costing a company had the following per unit costs when 10,000 units were produced. Direct labor......................................................$ 2 Direct...
-
Fixed costs per annum P60 000 Unit selling price 20 Unit variable cost 10 Relevant range 4 00012 000 units REQUIRED: Calculate the following: a. Break-Even Point in b. Units to be sold to obtain the...
-
A sales project at month 5 had an actual cost of $34,000, a planned cost of $42,000, and a value completed of $39,000. Find the cost and schedule variances and the CPI and SPI.
-
Stock A has a standard deviation of 7%. Stock B has a standard deviation of 12%. The correlation coefficient between the two stocks' returns is 0.4071. What is the risk (standard deviation) for an...
-
Why is diagnosis so vital in organizational change programs?
-
Ascorbic acid (vitamin C, C6H8O6) is a water-soluble vitamin.
-
According to the 2006 ACFE Report, organizations lose how much to fraud and abuse? a. Five percent of annual revenue b. About \(\$ 4,500\) per employee each year c. About \(\$ 12\) per day per...
-
Artero Corporation is a traditional toy products retailer that recently started an Internet-based subsidiary that sells toys online. A markup is added on goods the company purchases from...
-
View Policies Current Attempt in Progress Abe has learned that his great-aunt intends to give him $2,000 each year he is studying at university. Tuition must be paid in advance, so Abe would like to...
-
A cross-flow molecular filtration device equipped with a mesoporous membrane is used to separate the enzyme lysozyme from a fermentation broth, as shown in the figure (right column). Water at...
-
Toner Corporation computed the following: Year 1 taxable income,$10,000; Year 2 taxable loss, $( 40,000). At the end of Year 2,Toner made the following estimates: Year 3 taxable income, $4,000;Year 2...
-
what ways can syntactic and rhetorical sophistication enhance the persuasiveness and impact of written business proposals ?
-
Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November: Bickel Corporation...
-
Current Attempt in Progress Ivanhoe Corporation purchased equipment very late in 2023. Based on generous capital cost allowance rates provided in the Income Tax Act, Ivanhoe claimed CCA on its 2023...
-
An entity purchased an investment property on 1 January 20X3 for a cost of 3.5m. The property had an estimated useful life of 50 years, with no residual value, and at 31 December 20X5 had a fair...
-
Blanca owns a house in Fajardo. At the time of the interview, Blanca informed him that she lived during this taxable year for 20 days in the residence and that the residence was rented for 100 days....
-
The following exchange rates are given: USD 1=AUD 1.39 USD 1=GBP 0.59 AUD 1=GBP 0.39 An Australian investor is looking for an arbitrage opportunity. Assuming this investor has AUD200 available (and...
-
In Exercises 15 through 30, find the derivative dy/dx. In some of these problems, you may need to use implicit differentiation or logarithmic differentiation. y ex + et -2x 1 + e
-
Mary Martin recently started a job as an administrative assistant in the cost accounting department of Needham Manufacturing. New to the area of cost accounting, Mary is puzzled by the fact that one...
-
Flour Company has decided that their bread flour may sell better if it was marketed for gourmet baking and sold with infused spices. This would involve additional cost for the spices of $0.80 per...
-
Crispy, Inc., is a producer of potato chips. A single production process at Crispy, Inc., yields potato chips as the main product, as well as a byproduct that can be sold as a snack. Both products...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates to Exercises 6 through 11. Perform a horizontal analysis of the balance sheets and income statements...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates to Exercises 6 through 11. Perform a vertical analysis of the balance sheets and income statements for...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates to Exercises 6 through 11. Calculate earnings per share, the price-eam- m'ssm jngS ratio, the gross...
Study smarter with the SolutionInn App