Manta Ray Company manufactures diving masks with a variable cost of $35. The masks sell for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Manta Ray Company manufactures diving masks with a variable cost of $35. The masks sell for $44. Budgeted fixed manufacturing overhead for the most recent year was $799,000. Actual production was equal to planned production. Required: State whether operating income is higher under variable or absorption costing and the amount of the difference in reported operating income under the two methods. Treat each condition as an independent case. (Do not round intermediate calculations.) 1. Production Sales 2. Production Sales 3. Production. Sales: 1. 2. 3. Income Higher Under (Method) 94,000 units 92,000 units 85,000 units 91,600 units 82,000 units 82,000 units Amount of Difference Manta Ray Company manufactures diving masks with a variable cost of $35. The masks sell for $44. Budgeted fixed manufacturing overhead for the most recent year was $799,000. Actual production was equal to planned production. Required: State whether operating income is higher under variable or absorption costing and the amount of the difference in reported operating income under the two methods. Treat each condition as an independent case. (Do not round intermediate calculations.) 1. Production Sales 2. Production Sales 3. Production. Sales: 1. 2. 3. Income Higher Under (Method) 94,000 units 92,000 units 85,000 units 91,600 units 82,000 units 82,000 units Amount of Difference
Expert Answer:
Answer rating: 100% (QA)
1 1 2 3 4 56 7 8 9 10 11 12 13 A 1 2 WIN 3 B 2 Income Higher underMethod ... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
Kim Davis is in the 40 percent tax bracket, she is considering investing in HCA (taxable) bonds that carry a 12 percent interest rate. a. What is her after-tax yield (interest rate) on the bonds? b....
-
Key macroeconomic factors affecting the cost of tourism goods and services include all but which of the following: Interest rates Inflation The exchange rate Direct taxes Indirect taxes
-
Liberals and Realists present different views on the impact of economic interdependence on the likelihood of security conflict. Which view do you think is more reasonable and why?
-
How can staff review the effectiveness of their work, the services they provide and the social and cultural factors impacting on clients, groups or communities?
-
Consider a 1000-W iron whose base plate is made of 0.5-cm-thick aluminum alloy 2024-T6 (Æ¿ = 2770 kg/m3 and cp = 875 J/kg·oC). The base plate has a surface area of 0.03 m2....
-
In 2014, Jackie Chan Corporation developed a new product that will be marketed in 2016. In connection with the development of this product, the following costs were incurred in 2015: research and...
-
XCBob, Inc. is an online motorcycle and ATV parts business from the owners home. XCBob entered into oral agreements with the defendant, Ed Tucker Distributers, for purchases of various materials to...
-
Ellison Inc., a manufacturer of steel school lockers, plans to purchase a new punch press for use in its manufacturing process. After contacting the appropriate vendors, the purchasing department...
-
Consider a market with 4 agents a,...,d and 4 houses 1,...,4. The preference orders of agents over the houses are given by a: 1>2>3>4 b:1>2>3>4 c:1>2>3>4 d:4>3>2>1 How many Pareto efficient...
-
Review the methods used by supply chain managers to mitigate SCIS implementation risks.
-
XYZ Corporation has 4 million earnings after tax and 1 million shares outstanding The stock trades at a P/E ratio of 10 The firm has 3 million in excess cash a. Compute the current price of the stock...
-
A distributor is negotiating a supply contract for one of its item. The end-customer demand is forecasted as follows: Quantity Probability 20,000 0.2 30,000 0.4 45,000 0.35 60,000 0.05 The...
-
Why will the right to receive payments for goods delivered or to be delivered most likely already be recognized?
-
You are responsible for maintaining a mutant strain of E. coll. You observe that its doubling time is twice as long as wild type. You check incubator temperature, nutrient broth components, and pH....
-
Consider the following reaction: P406(s) P4(s) + 302(9) What mass of P4 will be produced from 12.0 g of P406? (Molar massses: P406 = 219.9 g/mol, P4 = 123.9 g/mol)
-
What stated preferences violate the completeness assumption?
-
In the circuit shown below, the source voltage has an rms value of 17.5 V at a frequency of 60.0 Hz. Here R-2R - R. When the switch is in position 1, the rms current is 297 mA. When the switch is in...
-
4. Jobe dy -Y 2 et by
-
The comparative balance sheets for Strackman Lux Company as of December 31 are presented below. Additional information:1. Operating expenses include depreciation expense of $42,000 and charges from...
-
You are provided with the following transactions that took place during a recent fiscal year. Instructions Complete the table indicating whether each item (1) affects operating (O) activities,...
-
S.V. Ayala claims that the relevant range concept is important only for variable costs. (a) Explain the relevant range concept. (b) Do you agree with S.V.s claim? Explain.
-
A first-order dynamic system is modeled as \[\dot{y}+3 y=f(t), y(0)=1\] Assuming the input \(f(t)\) is a step function with magnitude 0.8 , find \(y_{s s}\).
-
The nonlinear state-variable equations for a dynamic system are derived as Plot \(x_{1}(t)\) versus \(0 \leq t \leq 10\) by a. Using the RK4 method. b. Simulating the Simulink model of the system. [...
-
Draw the Bode plot and identify the corner frequency, as well as the asymptotic approximations of magnitude for low-frequency and high-frequency ranges. \(G(s)=\frac{4}{3 s+\frac{2}{3}}\)
Study smarter with the SolutionInn App