2. Change all of the numbers in the data area of your worksheet so that it...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. Change all of the numbers in the data area of your worksheet so that it looks like this: A 1 Chapter 6: Applying Excel 2 3 Data 4 Selling price per unit Manufacturing costs: 5 6 7 8 Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year 9 10 11 Selling and administrative expenses: Variable per unit sold 12 13 Fixed per year 14 15 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year $ $ $ $ $ $ $ B 310 114 69 34 98,800 2 46,000 Year 1 0 2,600 2,100 C Year 2 1,900 2,100 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing? (b) What is the net operating income (loss) in Year 2 under absorption costing? (c) What is the net operating income (loss) in Year 1 under variable costing? (d) What is the net operating income (loss) in Year 2 under variable costing? (e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Units were left over from the previous year The cost of goods sold is always less under variable costing than under absorption costing. Sales exceeded production so some of the fixed manufacturing overhead of the period was released from inventories under absorption costing. 3. Make a note of the absorption costing net operating income (loss) in Year 2. At the end of Year 1, the company's board of directors set a target for Year 2 of net operating income of $90,000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 3,800 units. (a) Would this change result in a bonus being paid to the CEO? O Yes O No (b) What is the net operating income (loss) in Year 2 under absorption costing? *** Mout (c) Would this doubling of production in Year 2 be in the best interests of the company if sales are expected to continue to be 2,100 units per year? O Yes O No 2. Change all of the numbers in the data area of your worksheet so that it looks like this: A 1 Chapter 6: Applying Excel 2 3 Data 4 Selling price per unit Manufacturing costs: 5 6 7 8 Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year 9 10 11 Selling and administrative expenses: Variable per unit sold 12 13 Fixed per year 14 15 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year $ $ $ $ $ $ $ B 310 114 69 34 98,800 2 46,000 Year 1 0 2,600 2,100 C Year 2 1,900 2,100 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing? (b) What is the net operating income (loss) in Year 2 under absorption costing? (c) What is the net operating income (loss) in Year 1 under variable costing? (d) What is the net operating income (loss) in Year 2 under variable costing? (e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Units were left over from the previous year The cost of goods sold is always less under variable costing than under absorption costing. Sales exceeded production so some of the fixed manufacturing overhead of the period was released from inventories under absorption costing. 3. Make a note of the absorption costing net operating income (loss) in Year 2. At the end of Year 1, the company's board of directors set a target for Year 2 of net operating income of $90,000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 3,800 units. (a) Would this change result in a bonus being paid to the CEO? O Yes O No (b) What is the net operating income (loss) in Year 2 under absorption costing? *** Mout (c) Would this doubling of production in Year 2 be in the best interests of the company if sales are expected to continue to be 2,100 units per year? O Yes O No
Expert Answer:
Related Book For
Introduction To Managerial Accounting
ISBN: 9781265672003
9th Edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date:
Students also viewed these accounting questions
-
Change all of the numbers in the data area of your worksheet so that it looks like this: If your formulas are correct, you should get the correct answers to the following questions. (a) What is the...
-
Change all of the numbers in the data area of your worksheet so that it looks like this: Chapter 2: Applying Excel Data Unit sales 20,000 units Selling price per unit $60 per unit Variable expenses...
-
Answers to the following questions about JP Morgan chase & co. What notable accounting considerations are there for companies in this industry? What legal or Regulatory matters are of concern?...
-
Graph the sets of points whose polar coordinates satisfy the equations and inequalitie. 0 , r = 1
-
Aqua Pools Inc. had the following activity in its most recent year of operations. (a) Purchase of delivery truck. (b) Issuance of bonds payable. (c) Sale of investments for no gain or loss. (d)...
-
J&L Corporation currently grows and sells fresh produce year-round in its homemade greenhouses. As the business is growing, J&L hopes to significantly expand its number of greenhouses in 5 years. J&L...
-
You want to invest your savings of S$28,000 (Singapore dollar) in Singapore Government Securities (SGS) for the next 2 years. Currently, you can invest either in a security that pays interest of 7.5...
-
Dibene Company is a manufacturer of computers. Its controller resigned in October 2012. An inexperienced assistant accountant has prepared the following income statement for the month of October...
-
estion 45: Which key lets you select multiple worksheets in a workbook? swer: (Shift) 13 (Tab) O (Alt) O (Enter)
-
Using the data in Digital Appendix 3, determine if males who do not smoke have faster times than males who do smoke. Write your H0 and Ha and test your null hypothesis. . This file includes student...
-
Explain why the real interest rate is the opportunity cost of loanable funds.
-
Hong Kong Is Keeping Its Currency Peg Hong Kongs central bank intervened 40 times in 2020 to keep its currency pegged to the U.S. dol lar at 7.8 Hong Kong dollars per U.S. dollar. The U.S. dollar...
-
After you have studied Economics in the News on pp. 652653, answer the following questions. a. What changes in the Feds assets occurred between 2006 and 2021? b. How did M2 and its velocity of...
-
Explain the distinction between a central bank and a commercial bank.
-
What are the requirements of the Magnuson-Moss Warranty Act?
-
The Social Security wage base limit was $147,000 in 2022. Hector received a business assignment of $100,000 from a partnership in which Hector was a general partner in 2022. This is Hector's only...
-
Perform the indicated operations. In designing a cam for a fire engine pump, the expression is used. Simplify this expression. (3) (3 4 32
-
What benefits result from decentralization?
-
Kent Duncan is exploring the possibility of opening a self-service car wash and operating it for the next five years until he retires. He has gathered the following information: a. A building in...
-
This exercise relates to the Double Diamond Skis Shaping and Milling Department that was discussed earlier in the chapter. The Excel worksheet form that appears below consolidates data from Exhibits...
-
True or False: When dealing with multiple alternatives having unequal lives, the planning horizon equals the least common multiple of lives.
-
Given the following information about sources of capital, what is the appropriate weighted average cost of capital to use in determining MARR? a. 9.87 percent b. 10.55 percent c. 12.42 percent d....
-
When using the "shortest life" planning horizon, what issue should you explicitly consider for alternatives whose cash flow profiles extend longer than the "shortest life"'? a. Determination of...
Study smarter with the SolutionInn App