4.Genco Inc. makes asingle product that sells for $50. The standard variablemanufacturing cost is $32.50 and the standard fixed manufacturingcost is $7.50, based on producing 20,000 units. During the yearGenco produced 22,000 units and sold 21,000 units. Actual fixedmanufacturing costs were $157,000; actual variable manufacturingcosts were $735,000. Selling and administrative expenses, allfixed, were $75,000. There were no beginning inventories.
a.Prepare a standardabsorption costing income statement.
b.Prepare a standardvariable costing income statement.
5.Brahms Corp. has thefollowing data:
Normalcapacity 25,000
Practicalcapacity 30,000
Budgetedproduction 20,000
Actualproduction 22,000
Actual sales ($25 perunit) 21,000
Standard variableproduction cost per unit $15
Budgeted fixedproductioncosts $120,000
There were no variablecost variances for the year. Fixed costs incurred were equal to thebudgeted amount. There were no beginning inventories and no sellingor administrative expenses.
a.Compute theabsorption costing income if fixed costs per unit are determinedusing normal capacity.
b.Compute theabsorption costing income if fixed costs per unit are determinedusing practical capacity.
c.Compute theabsorption costing income if fixed costs per unit are determinedusing budgeted production.
d.Compute the variablecosting income.
