Question: Hello need help with homework E8-30: p. 373 Exercise 8-30 Segmented Income Statements, Inventory Valuation For the coming year, Paulson Computers Inc. expects to produce

Hello need help with homework

E8-30: p. 373

Exercise 8-30 Segmented Income Statements, Inventory Valuation

For the coming year, Paulson Computers Inc. expects to produce 144,000 computers. Of these, 64,000 will be consumer (personal) computers and 80,000 will be small business computers. Common fixed overhead is $1,700,000. Additional information for the coming year is as follows:

Consumer Computers

Small Business Computers

Price

$ 640

$ 1,675

Unit direct materials

490

1,180

Unit direct labor

90

310

Unit variable overhead

23

50

Unit variable selling expense

35

65

Total direct fixed overhead

120,000

350,000

Fixed selling and administrative expense for Paulson Computers is $2,960,000 per year.

Required:

  • 1.CONCEPTUAL CONNECTION Calculate the unit variable cost under variable costing. Is this cost the same as unit variable product cost? Why or why not?
  • 2.Prepare a segmented variable-costing income statement for next year. The segments correspond to product lines: consumer computers and small business computers.

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