exercise1 - Income Statement for the Zwatch Company,...

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Income Statement for the Zwatch Company, Variable Costing for the Year Ended December 31, 2007 Revenues: ( $22.00 x 345,400) Variable costs Beginning inventory: ($5.10 × 85,000) $433,500 Variable manufacturing costs: ($5.10 × 294,900) 1,503,990 Cost of goods available for sale 1,937,490 Deduct ending inventory: ($5.10 × 34,500) -175,950 Variable cost of goods sold 1,761,540 Variable operating costs:($1.10 × 345,400) 379,940 Adjustment for variances 0 Total variable costs Contribution margin Fixed costs Fixed manufacturing overhead costs 1,440,000 Fixed operating costs 1,080,000 Total fixed costs Operating income Absorption Costing Data Fixed manufacturing overhead allocation rate = Fixed manufacturing overhead/Denominator level machine-hours = $2,937,320 Fixed manufacturing overhead allocation rate per unit = Fixed manufacturing overhead allocation rate/standard production rate = $240/50=$4
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$7,598,800 2,141,480 5,457,320 2,520,000 $2,937,320 0/6,000=$240 per machine-hour 4.80 =
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This note was uploaded on 07/17/2011 for the course UNKNOWN T212 taught by Professor Haws during the Spring '11 term at ITT Tech Tucson.

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exercise1 - Income Statement for the Zwatch Company,...

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