Question: Please can someone help me with this asap? I'd really appreciate if it was the same way in excel for me to understand! thank you!




Diego Company manufactures one product that is sold for $80 per unit in two geographic regions--the East and West regions. The following information portains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units Variable costs per unit Manufacturing Direct matorials $24 Direct labor $14 Variable manufacturing overhead $2 Variable selling and administrativo $4 Fixed costs per year Fixed manufacturing overhoad $800,000 Fixed selling and administrativo exponse $496,000 The company sold 25,000 units in the East region and 10,000 units in the West region. It determined that $250,000 of Page 286 its fixed selling and administrative expense is traccable to the West region, $150,000 is traceable to the East region, and the remaining $96,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. = 1 2 1. What is the unit product cost under variable costing? 2. What is the unit product cost under absorption costing? 3 4 Variable Costing Absorption Costing 5 6 6 7 8 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 9 10 11 12. 13 14 15 B D E F H 3. What is the company's total contribution margin under variable costing? 4. What is the company's net operating income under variable costing? Sales Variable expenses: Variable cost of goods sold Variable selling and administrative Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating loss 9 X A B D E F G H 5. What is the company's total gross margin under absorption costing? 6. What is the company's net operating income under absorption costing? Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income M K H 8 D G E F 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes? What is the cause of this difference? 2 4 5 6 Fixed manufacturing overhead in ending inventory Fixed manufacturing overhead in beginning inventory Manufacturing overhead deferred in (released from) Inventory 2 3 9 10 11 12 Variable costing net operating loss - see Q4 Add: fixed manufacturing overhead cost deferred in Inventory under absorption costing Absorption costing net operating income - see Q6 13 14 15 16 17 11 10
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