80.2K

Verified Solution

Link Copied!

t runtrng . r' Berties 18,00 TE 1.500 3.000 5,30 1 1 0 143, 1 o o o o - cong conductores como en las the common the comme Procin 5. pre 53, oth 111. Porte de unge meet the consectetur 14.20 150 16, 45 Total Post with noting il) 19.0 1. Spless Corporation has two major business segments--Apparel and Accessories. Data concerning those segments for December appear below: Sales revenues, Apparel Variable expenses, Apparel Traceable fixed expenses, Apparel Sales revenues, Accessories variable expenses, Accessories Traceable fixed expenses, Accessories 5692,000 $102,000 $146,000 $77,000 $479,600 $124.000 Common fored expenses totaled $373,000 and were allocated as follows $154,000 to the Apparel business segment and $219,000 to the Accessories business segment Required: Prepare a segmented Income statement in the contribution format for the company Total Company Apparel Accessori Se Naumann Corporation produces and sells a single product Data concerning that product appear below. Percent of Sales selling price Variable expenses Contribution margin Per Unit $200 42 $ 158 100% 213 79% Fixed expenses are $120,000 per month. The company is currently selling 1.100 units per month Required: Management is considering using a new component that would increase the unit variable cost by $40. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 300 units. What should be the overall effect on the company's monthly net operating income of this change of fixed expenses are unaffected? (Negative amounts should be indicated by a minus slgn.) Change in net operating income Groleau Corporation has an activity-based costing system with three activity cost pools--Processing. Setting up and Other The company's overhead costs, which consist of factory utilities and Indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine hours (MHS) and costs in the Setting up cost pool are assigned to products based on the number of batches. Costs in the other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below: Factory utilities (total) Indirect labor (total) $35, 120 $18,9ee Distribution of Resource Consumption Across Activity Cost Pools Factory utilities Indirect labor Processing e.se 0.40 Setting up 0.4e 0.28 Other 0.30 0.40 Product 58 Product F1 Total MHS 3,000 7.5e 12,500 Batches 1,400 380 2,200 Sales (total) Direct materials (total) Direct Labor (total) Product 58 $70, ase $19, 100 $31,90 Product F1 $ 99, ece $4,100 $ 41,200 Required: a. Assign overhead costs to activity cost pools using activity based costing b. Calculate activity rates for each activity cost pool using activity-based costing c Determine the amount of overhead cost that would be assigned to each product using activity-based costing d. Determine the product margins for each product using activity-based costing Complete this question by entering your answers in the tabs below. Required A Required Required D Assign overhead costs to activity cost pools using activity-based costing Activity Cost Pools Processing Other Total Factory is Indirect labor Total Required) Pacheo Corporation, which has only one product, has provided the following data concering its most recent month of operations. $ 98 660 2,648 3,ele 290 4 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead var Lable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ $ $ $ 25 18 2 12 $66,000 $ 9, e3e The company produces the same number of units every month, although the sales in units vary from month to month. The company's vantable costs per unit and total fixed costs have been constant from month to month. Required: a. What is the unit product cost for the month under vartable costing? b. Prepare a contribution format income statement for the month using variable costing c. Without preparing an income statement, determine the absorption costing net operating income for the month (Hint: Use the reconciliation method) Complete this question by entering your answers in the tabs below. Required Required B Required What is the unt product cost for the month under variable costing Coat per Unit Vanable conting Required B > The contribution margin ratio of Kuck Corporation's only product is 67%. The company's monthly fixed expense is $454700 and the company's monthly target profit is $40.700 Required: Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest whole dollar amount.) Sales Activity based costing is a costing method that is designed to provide managers with product cost information for Internal decision-making. True or False True False t runtrng . r' Berties 18,00 TE 1.500 3.000 5,30 1 1 0 143, 1 o o o o - cong conductores como en las the common the comme Procin 5. pre 53, oth 111. Porte de unge meet the consectetur 14.20 150 16, 45 Total Post with noting il) 19.0 1. Spless Corporation has two major business segments--Apparel and Accessories. Data concerning those segments for December appear below: Sales revenues, Apparel Variable expenses, Apparel Traceable fixed expenses, Apparel Sales revenues, Accessories variable expenses, Accessories Traceable fixed expenses, Accessories 5692,000 $102,000 $146,000 $77,000 $479,600 $124.000 Common fored expenses totaled $373,000 and were allocated as follows $154,000 to the Apparel business segment and $219,000 to the Accessories business segment Required: Prepare a segmented Income statement in the contribution format for the company Total Company Apparel Accessori Se Naumann Corporation produces and sells a single product Data concerning that product appear below. Percent of Sales selling price Variable expenses Contribution margin Per Unit $200 42 $ 158 100% 213 79% Fixed expenses are $120,000 per month. The company is currently selling 1.100 units per month Required: Management is considering using a new component that would increase the unit variable cost by $40. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 300 units. What should be the overall effect on the company's monthly net operating income of this change of fixed expenses are unaffected? (Negative amounts should be indicated by a minus slgn.) Change in net operating income Groleau Corporation has an activity-based costing system with three activity cost pools--Processing. Setting up and Other The company's overhead costs, which consist of factory utilities and Indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine hours (MHS) and costs in the Setting up cost pool are assigned to products based on the number of batches. Costs in the other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below: Factory utilities (total) Indirect labor (total) $35, 120 $18,9ee Distribution of Resource Consumption Across Activity Cost Pools Factory utilities Indirect labor Processing e.se 0.40 Setting up 0.4e 0.28 Other 0.30 0.40 Product 58 Product F1 Total MHS 3,000 7.5e 12,500 Batches 1,400 380 2,200 Sales (total) Direct materials (total) Direct Labor (total) Product 58 $70, ase $19, 100 $31,90 Product F1 $ 99, ece $4,100 $ 41,200 Required: a. Assign overhead costs to activity cost pools using activity based costing b. Calculate activity rates for each activity cost pool using activity-based costing c Determine the amount of overhead cost that would be assigned to each product using activity-based costing d. Determine the product margins for each product using activity-based costing Complete this question by entering your answers in the tabs below. Required A Required Required D Assign overhead costs to activity cost pools using activity-based costing Activity Cost Pools Processing Other Total Factory is Indirect labor Total Required) Pacheo Corporation, which has only one product, has provided the following data concering its most recent month of operations. $ 98 660 2,648 3,ele 290 4 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead var Lable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ $ $ $ 25 18 2 12 $66,000 $ 9, e3e The company produces the same number of units every month, although the sales in units vary from month to month. The company's vantable costs per unit and total fixed costs have been constant from month to month. Required: a. What is the unit product cost for the month under vartable costing? b. Prepare a contribution format income statement for the month using variable costing c. Without preparing an income statement, determine the absorption costing net operating income for the month (Hint: Use the reconciliation method) Complete this question by entering your answers in the tabs below. Required Required B Required What is the unt product cost for the month under variable costing Coat per Unit Vanable conting Required B > The contribution margin ratio of Kuck Corporation's only product is 67%. The company's monthly fixed expense is $454700 and the company's monthly target profit is $40.700 Required: Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest whole dollar amount.) Sales Activity based costing is a costing method that is designed to provide managers with product cost information for Internal decision-making. True or False True False

Answer & Explanation Solved by verified expert

See Answer