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...
-
Shonrock International is considering a significant expansion to its product line. The sales force is excited about the opportunities that the new products will bring. The new products are a...
-
1. Write an equation of the line with x-intercept (3, 0) and y-intercept (0, -2). 2. If x + 7y = 30 and x = -2y, then determine the value of y.
-
Eleanors Computers is a retailer of computer products. Using the financial data provided, complete the financial ratio calculations for 2024. Advise management of any ratios that indicate potential...
-
A computer supplies firm called True Disk has set up accounts for countless businesses in Dosville. True Disk sends out invoices monthly and will give discounts if payments are made within 10 days....
-
What do coaches expect to gain from coaching? And how will we know at the end if these benefits are realised? How would you define coaching? What does coaching mean to you as a Coach and as a...
-
Three entrepreneurs were looking to start a new brewpub near Sacramento, California, called Roseville Brewing Company (RBC). Brewpubs provide two products to customersfood from the restaurant segment...
-
Consider the following national income model : Y = C + I + G o C = 110 + 0.48Y 3.5I = 167 + 0.18Y Where G o = 183 (i) Identify the exogenous variable/s. if there are more than one variable, separate...
-
There are many advertisements where the company advertises the number of choices that are available by picking some number of items from a menu. Pick a recent ad that you've seen/heard (or come up...
-
Suppose y = 10, 4, 8 when x is 1,1,2. Our model uses parameters theta=1,1 and when we run it using x=1,1,2 it predicts y = 9,5,8. We then back calculate dloss/dtheta = 2,-1. a) In what direction...
-
The U-tube manometer is connected to water flowing in pipes at A and B. The bottom segment of the manometer is filled with glycerine (SG=1.26), and the pressure at A is 18 kPa. The fluid levels in...
-
Find the population mode of the ages of 12 middle-management employees of a certain company. The ages are 42, 53, 45, 54, 59, 48, 54, 46, 51, 58, 47 and 55.
-
How can Marriott Bonvoy use "segmentation and positioning" to create brand loyalty in America? Specifically, focus on the hotel industry to answer the question. There are four segments: Business...
-
What is Population, Sample and Data Condensation? What is Ogive Curve?
-
Write the expression in radical notation. Then evaluate the expression when the result is an integer. 23 -1/2
-
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...
-
Narco is in serious financial difficulty and is unable to meet current unsecured obligations of $30,000 to some 14 creditors who are demanding immediate payment. Narco owes Johnson $5,000, and...
-
Suppose that the demand function for lamb in Australia is Q = 63 - 11 + 7 b + 3 c + 2, where Q is the quantity in million kilograms (kg) of lamb per year, is the dollar price per kg (all prices...
-
What is the effect of a United States quota on sugar of \(\bar{Q}\) on the equilibrium in the U.S. sugar market?
Study smarter with the SolutionInn App