Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 11-16a (algo) variable costing versus abs

Exercise 11-16A (Algo) Variable costing versus absorption costing LO 11-4 Finch Company incurred manufacturing overhead...

70.2K

Verified Solution

Question

Accounting

Exercise 11-16A (Algo) Variable costing versus absorption costing LO 11-4 Finch Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 39.10 /unit Direct labor $ 27.30 /unit Manufacturing overhead Variable $ 10.40 /unit Fixed ($18.20/unit for 1,200 units) $ 21,840 Variable selling and administrative expenses $ 5,040 Fixed selling and administrative expenses $ 15,900 The company produced 1,200 units and sold 700 of them at $181.70 per unit. Assume that the production manager is paid a 2 percent bonus based on the companys net income. Required Prepare an income statement using absorption costing. Prepare an income statement using variable costing. Determine the managers bonus using each approach. Which approach would you recommend for internal reporting

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Uranium hexafluoride (UF6) sublimes from a solid to a gas and boils at a very low...

Chemistry
Q

#1 Describe the Na+/K+ pump #2 sketch and describe how a cell would replicate a fragment of...

Biology
Q

In a recent election there were six candidates and 3200 total votes The table below...

Basic Math
Q

In his Fireside Chat after the attack on Pearl Harbor, how does FDR increase Americans'...

Basic Math
Q

Approximate the following number using a calculator.2)2456.32.46.33() = (Round to three decimal places as needed.)5

Basic Math
Q

A cruise ship maintains a speed of 14 knots (nautical miles per hour) sailing from...

Algebra
Q

Find the vertex focus and directrix for the following parabolas a y 5 8 z...

Algebra
Q

D 500 1 014 2 Example 9 A couple needs to get a loan of...

Algebra
Q

Delauder Enterprises makes a varlety of products that it sells to other businesses. The company's...

Accounting
Q

Marv Company's direct labor costs for manufacturing its only product were as follows for October:...

Accounting
Q

due to a number of machine breakdowns, a reductiin in the number of machine hours...

Accounting
Q

A non-dividend paying company is expected to begin paying dividends, 4 years from now. The...

Finance