Current Attempt in Progress The Bramble manufactures double-sided pens-a pen on one side, a highlighter on...

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Current Attempt in Progress The Bramble manufactures double-sided pens-a pen on one side, a highlighter on the other. As the accounting manager, Shade is responsible for presenting three different versions of the company's income statement to the rest of the management team at year-end. Team members are very familiar with absorption costing, as they have been evaluating gross margin amounts and percentages for years. They are less keen on how fixed-MOH impacts the income statement, so Shade gathers the following current information. The information includes three possible capacity levels for calculating the fixed-MOH rate. Shade also notes there are no price or efficiency variances this period. Any fixed-MOH volume variance is written off to COGS. Theoretical level Practical level Normal level Actual production Sales volume 114,400 units 57,200 units 52,000 units 69,400 units 60,000 units Budgeted fixed-MOH cost $228,800 Budgeted DM cost $2.40 per unit Budgeted DL cost $1.40 per unit Budgeted variable-MOH cost $0.20 per unit Selling price $15.00 per unit (a) Your answer is correct. Calculate the fixed-MOH volume variance for each possible capacity level this year; specify amount and sign. Fixed-MOH Volume Variance Sign Theoretical $ 90000 1 Unfavorable Practical $ 48800 i Favorable Normal $ 76560 Favorable Prepare partial income statements through gross margin for each denominator level. Sales Less COGS Fixed-MOH Volume Varlance ✓ Gross Margin Fixed Expenses Operating Income S Income statements Theoretical 1716000 $ Practical 85800 $ Normal 780000 90000 i 48800 i 76560 i $ $ 19 Current Attempt in Progress The Bramble manufactures double-sided pens-a pen on one side, a highlighter on the other. As the accounting manager, Shade is responsible for presenting three different versions of the company's income statement to the rest of the management team at year-end. Team members are very familiar with absorption costing, as they have been evaluating gross margin amounts and percentages for years. They are less keen on how fixed-MOH impacts the income statement, so Shade gathers the following current information. The information includes three possible capacity levels for calculating the fixed-MOH rate. Shade also notes there are no price or efficiency variances this period. Any fixed-MOH volume variance is written off to COGS. Theoretical level Practical level Normal level Actual production Sales volume 114,400 units 57,200 units 52,000 units 69,400 units 60,000 units Budgeted fixed-MOH cost $228,800 Budgeted DM cost $2.40 per unit Budgeted DL cost $1.40 per unit Budgeted variable-MOH cost $0.20 per unit Selling price $15.00 per unit (a) Your answer is correct. Calculate the fixed-MOH volume variance for each possible capacity level this year; specify amount and sign. Fixed-MOH Volume Variance Sign Theoretical $ 90000 1 Unfavorable Practical $ 48800 i Favorable Normal $ 76560 Favorable Prepare partial income statements through gross margin for each denominator level. Sales Less COGS Fixed-MOH Volume Varlance ✓ Gross Margin Fixed Expenses Operating Income S Income statements Theoretical 1716000 $ Practical 85800 $ Normal 780000 90000 i 48800 i 76560 i $ $ 19

Answer rating: 100% (QA)

Calculate the fixedMOH volume variance for each capacity level FixedMOH Volume VarianceActual Produc... View the full answer