9.22 - 9-22 Absorption versus variable costing 1 The variable manufacturing cost per package of Mimic is $55 $45 $120 = $220 2007 Variable-costing

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Unformatted text preview: 9-22 Absorption versus variable costing. 1. The variable manufacturing cost per package of Mimic is $55 + $45 + $120 = $220. 2007 Variable-costing based Operating Income Statement Revenues (44,800 pkgs. . $1,200 per pkg.) Variable costs Variable cost of goods sold (44,800 pkgs x $220) Variable marketing costs (44,800 pkgs. . $75 per pkg.) Total variable costs Contribution margin Fixed costs Fixed manufacturing costs Fixed R&D Fixed marketing Total fixed costs Operating income 2. 2007 Absorption-costing based Operating Income Statement Revenues (44,800 pkgs. . $1,200 per pkg.) Cost of goods sold (44,800 pkgs. . ($220 + $165) per pkg.) Adjust for production volume variance Adjust for budget variance Cost of goods sold Gross margin Operating costs Variable marketing costs (44,800 pkgs. . $75 per pkg.) Fixed R&D Fixed marketing Total operating costs Operating income a $53,760,00 0 9,856,000 3,360,000 13,216,00 0 $40,544,00 0 $ 7,358,400 4,905,600 15,622,400 27,886,40 0 $12,657,60 0 $53,760,000 17,248,000 0 891,600 16,356,400 $37,403,600 $ 3,360,000 4,905,600 15,622,400 23,888,000 $13,515,600 FOH Budget variance = Allocated $8,250,000 ($165 . 50,000) Actual $7,358,400 = $891,600 ...
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This note was uploaded on 07/07/2009 for the course ACCT 2102 taught by Professor Unknown during the Three '08 term at Queensland.

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