. What was Product Z’s unit cost under absorption costing? 2. What was Product Z’s unit cost under variable costing?
Q: What is the basic difference between absorption costing and variable costing?
A:
Q: When units produced are less than units sold, how does operating income differ between variable…
A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…
Q: Q- 2: and variable costing? What is the basic difference between absorption costing
A: “Since you have posted a many questions, we will solve first question for you. To get the remaining…
Q: Which is more consistent with cost-volume-profit analysis, variable costing or absorption costing?…
A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…
Q: Marginal Costing
A: Option a is wrong because marginal costing is not a technique of cost reduction. Cost reduction…
Q: What is the basic difference between absorption costing and variable costing? What are the…
A: Product costs are those kinds of costs which is related to the procedure of production directly like…
Q: Explain the difference between the variable and absorption costing methods.
A: Under Variable Costing method, only variable costs are considered which includes only variable cost…
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A:
Q: How is the distinction between direct and indirect costs handled differently under volume-based…
A: Activity-based costing: It is a method that helps in finding the activities performed by a company…
Q: Are selling and administrative expenses treated as product costs or as period costs under variable…
A: Selling and administrative expenses: These expenses incurred by the company does not relate to the…
Q: What are the factors that affect the breakeven point under (a) variable costing and (b) absorption…
A: Breakeven Point:The level of production that is required to cover the fixed costs and variable costs…
Q: If the units produced exceed unit sales, which method would you expect to show the higher…
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
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A: In managerial accounting, variable costing is a cost concept. During the creation of a product…
Q: nder variable costing, which of the following costs are treated as period costs?
A: Variable costing:- It is a concept used in cost and managerial accounting. In which the fixed…
Q: Define prime cost and conversion. Why can't prime cost prime cost be added to conversion cost to get…
A: Classification of costs is important to arrive at per head cost. It helps the management to take…
Q: Which one of the following activity shows semi-variable cost behaviour A. Unit level activity B.…
A: A semi-variable cost, also known as a semi-fixed cost or a mixed cost, is a cost composed of a…
Q: A. What is the net income under variable costing method? B. What is the net income under absorption…
A: solution : What is the net income under variable costing method? Units 10000 Sales…
Q: What is a variable cost? Identify two variable costs.
A:
Q: determine unit cost under variable costing?
A: Costing techniques are important concept used in cost accounting branch. There are two type of…
Q: TRUE OR FALSE When units sold exceed, units produced, income under absorption costing is higher…
A: Absorption costing is the full costing method under which all the costs related to manufacturing are…
Q: re the difference between traditional product costs and activity-based product
A: Traditional product costs: The traditional method of allocating product costs is to allocate the…
Q: Direct Labor would be considered a? Group of answer choices Mixed Cost Step Cost Variable Cost…
A: The manufacturing companies would be under go many costs which will be directly related to…
Q: Explain the difference between - Absorption and Marginal Costing
A: The Question has covered the concept of Absorption and Marginal Costing. Absorption Costing The…
Q: What effect does an increase in volume have on—a. Unit fixed costs?
A: Fixed costs are those costs of business which remain fixed in total irrespective of change in volume…
Q: Which of the following statements is true? O a. Activity-based costs per unit are always greater…
A: The volume based costing represents the cost allocation to a single cost pool. The high volume…
Q: In CPV analysis/ marginal costing, the term contribution is used. What does Contribution mean to…
A:
Q: 1. What is the net income under variable costing method? 2. What is the net income under absorption…
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: Question #2 What is absorption costing and marginal costing in the context of overhead costs?…
A: Overhead costs are the indirect costs incurred in operating the business. It does not include any…
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A: Solution:- Given, Inventory for Gem's sole product totaled = 6,000 units and 5,200 units…
Q: What is absorption costing and marginal costing in the context of overhead costs? Discuss the…
A: The difference between Absorption Costing and Marginal Costing is discussed hereunder :
Q: What is the difference between absorption costing and variable costing?
A:
Q: key different in accounting for costs between absorption and variable costing
A: Absorption costing and variable costing are two methods of costing products.
Q: Explain the difference between variable costing and absorption costing income statements. Provide a…
A: Difference Between Variable Costing and absorption costing income statements. Under Variable…
Q: a. What was Product Z’s unit cost under absorption costing? b. What was Product Z’s unit cost under…
A: Absorption costing and Variable costing are two types of costing methods that are being used in the…
Q: 1. What would the manufacturing cost per unit be under absorption costing? 2. What would the…
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Q: Briefly explain the difference between absorption costing and variable costing.
A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…
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A: Definition: Standard Costing: Standard costing is an accounting tool that is used to measure the…
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A: Cost accounting is widely used by cost accountants to determine the cost of the product produced in…
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A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…
Q: Is a variable costing income statement in service operations? If so, provide a hypothetical example…
A: Variable costing income statement deducts all the variable expenses from the revenues to get the…
Q: When units produced equal units sold, how does operating income differ between variable costing and…
A: Definition: Absorption Costing: It is a method of cost accounting where all the costs are related to…
Q: How is Variable Costing and Absorption Costing differs from each other?
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: Product and period cost according to absorption costing and Variable costing with examples ?
A: Absorption costing is a method where all the cost related to the manufacturing process is considered…
Q: What does it mean that a cost is a direct, product, and variable cost?
A: The cost represents the value incurred by the corporation in making the product ready to sell in the…
1. What was Product Z’s unit cost under absorption costing?
2. What was Product Z’s unit cost under variable costing?
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- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods SoldEllerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
- Clearwater Candy Co. had a cost per equivalent pound for the month of 4.56 for materials, 1.75 for labor, and 1.00 for overhead. During the month, 10,250 lb were completed and transferred to finished goods. The 3,200 lb in ending work in process were 100% complete as to materials and 60% complete as to labor and overhead. At the beginning of the month, 1,500 lb were in process, 100% complete as to materials and 50% complete as to labor and overhead. The beginning inventory had a cost of 8,775. Clearwater uses FIFO costing. Required: 1. Calculate the cost of the pounds completed and transferred to finished goods. 2. Calculate the cost of the ending work in process.During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine tools: 1,500 units of Tool SK1 and 2,500 units of Tool SK3. The cycle time for SK1 is 0.73 hour, and the cycle time for SK3 is 0.56 hour. The following costs were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Tool SK1 is responsible for 60% of the materials cost. Calculate the unit cost for Tool SK 1 and Tool SK3, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
- A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600The records of Burris Inc. reflect the following data: Work in process, beginning of month2,000 units one-half completed at a cost of 1,250 for materials, 675 for labor, and 950 for overhead. Production costs for the monthmaterials, 99,150; labor, 54,925; factory overhead, 75,050. Units completed and transferred to stock38,500. Work in process, end of month3,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost.Comacho Chemical Co. recorded costs for the month of 18,900 for materials, 44,100 for labor, and 26,250 for factory overhead. There was no beginning work in process, 8,000 units were finished, and 3,000 units were in process at the end of the period, two-thirds completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)
- Ardt-Barger has a beginning work in process inventory of 5.500 units and transferred in 25,000 units before ending the month with 3.000 u flits that were 100% complete with regard to materials and 80% complete with regard to conversion costs. The cost per unit of material is $5.45, and the cost per unit for conversion is $6.20 per unit, Using the weighted-average method, prepare the companys process cost summary for the month.Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?During March, the following costs were charged to the manufacturing department: $22,500 for materials; $45,625 for labor; and $50,000 for manufacturing overhead. The records show that 40,000 units were completed and transferred, while 10,000 remained in ending inventory. There were 45,000 equivalent units of material and 42,500 units of conversion costs. Using the weighted-average method, prepare the companys process cost summary for the month.