# 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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