Check my work Problem 6A-5 Super-Variable Costing, Variable Costing, and Absorption Costing Income Statements [LO6-2, LO6-6]...

 
 
  

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Check my work Problem 6A-5 Super-Variable Costing, Variable Costing, and Absorption Costing Income Statements [LO6-2, LO6-6] Bracey Company manufactures and sells one product. The following information pertains to the company's first year of operations: Variable cost per unit: Direct materials 28 Fixed costs per year: Direct labor $367,500 Fixed manufacturing overhead $ 389,550 Fixed selling and administrative expenses $ 66,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Bracey produced 24,500 units and sold 22,700 units. The selling price of the company's product is $65 per unit. Required: 1. Assume the company uses super-variable costing: a. Compute the unit product cost for the year. b. Prepare an Income statement for the year. 2. Assume the company uses a variable costing system that assigns $15.00 of direct labor cost to each unit produced: a. Compute the unit product cost for the year. b. Prepare an Income statement for the year. 3. Assume the company uses an absorption costing system that assigns $15.00 of direct labor cost and $15.90 of fixed manufacturing overhead cost to each unit produced: a. Compute the unit product cost for the year. b. Prepare an Income statement for the year. 4a. Reconcile the difference between the super-variable costing and variable costing net operating Incomes. 4b. Reconcile the difference between the super-variable costing and absorption costing net operating Incomes. Complete this question by entering your answers in the tabs below. Req 28 Req 3A Req 4B Req 1A Req 18 Req 2A Req 3B Req 4A Compute the unit product cost for the year. Assume the company uses super-variable costing. Unit product cost < Req 1A Req 1B > Check my work Problem 6A-5 Super-Variable Costing, Variable Costing, and Absorption Costing Income Statements [LO6-2, LO6-6] Bracey Company manufactures and sells one product. The following information pertains to the company's first year of operations: Variable cost per unit: Direct materials 28 Fixed costs per year: Direct labor $367,500 Fixed manufacturing overhead $ 389,550 Fixed selling and administrative expenses $ 66,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Bracey produced 24,500 units and sold 22,700 units. The selling price of the company's product is $65 per unit. Required: 1. Assume the company uses super-variable costing: a. Compute the unit product cost for the year. b. Prepare an Income statement for the year. 2. Assume the company uses a variable costing system that assigns $15.00 of direct labor cost to each unit produced: a. Compute the unit product cost for the year. b. Prepare an Income statement for the year. 3. Assume the company uses an absorption costing system that assigns $15.00 of direct labor cost and $15.90 of fixed manufacturing overhead cost to each unit produced: a. Compute the unit product cost for the year. b. Prepare an Income statement for the year. 4a. Reconcile the difference between the super-variable costing and variable costing net operating Incomes. 4b. Reconcile the difference between the super-variable costing and absorption costing net operating Incomes. Complete this question by entering your answers in the tabs below. Req 28 Req 3A Req 4B Req 1A Req 18 Req 2A Req 3B Req 4A Compute the unit product cost for the year. Assume the company uses super-variable costing. Unit product cost < Req 1A Req 1B >

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Ques 1 a Unit product cost 28 b Income statement Sales 2270065 1475500 Variable cost of g... View the full answer