Gia's Foods produces frozen meals, which it sells for $8 each. The company computes a new monthly fixed manufacturing overhead rate based on the planned numberof meals to be produced that month. All costs and production levels are exactly as planned. The following data are from Gia's Foods first month in business.January2007Sales1,000 mealsProduction1,400 mealsVariable manufacturing cost per meal$4.00Sales commission cost per meal$1.00Total fixed manufacturing overhead$700Total fixed marketing and administrative costs$600Requirements:i)Compute the product cost per meal produced under absorption costing and under variable costing.ii)Prepare the income statement for January 2007 using variable costingList three situations in which marginal costing, as a technique, aids decision-making.

Name: Gia's Foods produces frozen meals, which it sells for $8 each. The co
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Gia's Foods produces frozen meals, which it sells for $8 each. The company computes a new monthly fixed manufacturing overhead rate based on the planned numberof meals to be produced that month. All costs and production levels are exactly as planned

Sales = 1000 meals Production = 1400 meals Variable manufacturing cost per meals = $4.00 Sales…

Business

Accounting

i) Compute the product cost per meal produced under absorption costing and under variable costing. ii) Prepare the income statement for January 2007 using variable costing List three situations in which marginal costing, as a technique, aids decision-making.

i) Compute the product cost per meal produced under absorption costing and under variable costing. ii) Prepare the income statement for January 2007 using variable costing List three situations in which marginal costing, as a technique, aids decision-making.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 27E: Alard Manufacturing Company has a billing department staffed by four billing clerks. Each clerk is...

See similar textbooks

Similar questions

Alard Manufacturing Company has a billing department staffed by four billing clerks. Each clerk is paid 32,000 per year and is able to process 8,000 bills. Last year, 27,360 bills were processed by the four agents. Calculate the unused capacity in terms of number of bills. a. 27,360 b. 4,640 c. 8,000 d. 32,000
Gia’s Foods produces frozen meals, which it sells for $8 each. The company computes a new monthly fixed manufacturing overhead rate based on the planned number of meals to be produced that month. All costs and production levels are exactly as planned. The following data are from Gia’s Foods first month in business. January2007 Sales 1,000 meals Production 1,400 meals Variable manufacturing cost per meal $4.00 Sales commission cost per meal $1.00 Total fixed manufacturing overhead $700 Total fixed marketing and administrative costs $600 Requirements: i) Compute the product cost per meal produced under absorption costing and under variable costing. ii)Prepare the income statement for January 2007 using variable costing iii) List three situations in which marginal costing, as a technique, aids decision-making.
Gia’s Foods produces frozen meals, which it sells for $8 each. The company computes a new monthly fixed manufacturing overhead rate based on the planned number of meals to be produced that month. All costs and production levels are exactly as planned. The following data are from Gia’s Foods first month in business. January 2007 Sales 1,000 meals Production 1,400 meals Variable manufacturing cost per meal $4.00 Sales commission cost per meal $1.00 Total fixed manufacturing overhead $700 Total fixed marketing and administrative costs $600 Requirements: Compute the product cost per meal produced under absorption…
Gia foods produce frozen meal, which it sellls fro $8 each. the company computes a new monthly fixed manufacturing overhead rate based on the planned number of meals to be produced that month. all costs and production levels are exactly as planned. the following data are from GIA'S Foods first month in business. sales 1000 meal production 1400 meals variable maznufacturing cost per meal 400 sales commission cost per meal 100 total fixed manufacturing overhead 700 total fixed marketing and administrative cost 600 A) compute the product cost per meal produced under absorption costing and under variable costing. B) prepare the income statement for January 2007 using variable costing c) list three situation in which marginal costing as a technique aids decision making.
Gia's Foods produces frozen meals, which it sells for $8 each. The company computes a new monthly fixed manufacturing overhead rate based on the planned number of meals to be produced that month. All costs and production levels are exactly as planned. The following data are from Gia's Foods first month in business. Sales Production Variable manufacturing cost per meal Sales commission cost per meal Total fixed manufacturing overhead Total fixed marketing and administrative costs | January 2007 1,000 meals 1,400 meals $4.00 $1.00 $700 Sóoo Requirements: i) Compute the product cost per meal produced under absorption costing and under variable costing. ii) Prepare the income statement for January 2007 using variable costing iii) List three situations in which marginal costing, as a technique, aids decision-making.
Murphy’s Foods produces frozen meals, which it sells for $7 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company’s first two months in business: The table shows the following data with cost in dollars: Sales January: 1,400 meals February: 1,600 meals Production January: 2,000 meals February: 1,400 meals Variable manufacturing expense per meal January: 5 February: 5 Sales commission expense per meal January: 1 February: 1 Total fixed manufacturing overhead January: 700 February: 700 Total fixed marketing and administrative expenses January: 500 February: 500 Requirements 1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for…
Nicky's Entrees produces frozen meals, which it sells for $9 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business: January February Sales 1,200 Meals 1,600 Meals Production 1,600 Meals 1,500 Meals Variable manufacturing expense per meal $3 $3 Sales commission expense per meal $1 $1 Total fixed manufacturing overhead $1,200 $1,200 Total fixed marketing and administrative expenses $800 $800 Requirements 1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February. 2. Prepare separate monthly income statements for January and for February, using the following: a. Absorption costing b. Variable costing.…
Louie's Meals produces frozen meals, which it sells for $7 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months inbusiness: January February Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan 1,600 meals Feb 1,900 meals Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan 2,000 meals Feb 1,600 meals Variable manufacturing expense per meal. . . . . . . . . . Jan $4 Feb $4 Sales commission expense per meal. . . . . . . . . . . . . . Jan $1 Feb $1 Total fixed manufacturing overhead. . . . . . . . . . . . . Jan $800 Feb $800 Total fixed marketing and administrative expenses. . Jan $300 Feb $300 Requirement 1. Compute the product cost per meal…
stella'sFoods produces frozen meals that it sells for$11each. The company computes a new monthly fixed manufacturing overhead allocation rate based on the planned number of meals to be produced that month. Assume all costs and production levels are exactly as planned. The following data are fromStella'sFoods's first month in business units produced and sold sales 800 meals production 1100 meals $ variable manufacturing of meals 5 sales commission cost per meal 1 total fixed manufacturing overhead 385 total fixed selling and administrative cost 700 REQUIREMENTS Compute the product cost per meal produced under absorption costing and under variable costing. (Round your answers to the nearest cents Prepare income…
Mario’s Foods produces frozen meals, which it sells for $8 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company’s first two months in business: (picture chart 1) Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February. Prepare separate monthly income statements for January and for February, using the following: a. Absorption costing b. Variable costing Is operating income higher under absorption costing or variable costing in January? In February? Explain the pattern of differences in operating income based on absorption costing versus variable costing.
Viviana's Foods produces frozen meals that it sells for $15 each. The company computes a new monthly fixed manufacturing overhead allocation rate based on the planned number of meals to be produced that month. Assume all costs and production levels are exactly as planned. The following data are from Viviana's Foods's first month in business: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the product cost per meal produced under absorption costing and under variable costing. (Round your answers to the nearest cent.) Variable costing Absorption costing Total product cost per meal Requirement 2a. Prepare Viviana's Foods's January income statement using absorption costing. Viviana's Foods Income Statement (Absorption Costing) Month Ended January 31 Operating Income Requirement 2b. Prepare Viviana's Foods's January income statement using variable costing. Viviana's Foods Income Statement (Variable Costing) Month Ended January 31 CXXIS Operating Income…
Mark's Meals produces frozen meals, which it sells for $9 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February. February Less: Less January Less: Absorption costing Total product cost Requirement 2a. Prepare separate monthly income statements for January and for February, using absorption costing. Mark's Meals Income Statement (Absorption Costing) Month Ended Less: Variable costing Absorption costing Variable costing Requirement 2b. Prepare Mark's Meals' January and February income statements using variable costing. Mark's…