Ch 8 Solutions to Assigned Homework

Ch 8 Solutions to Assigned Homework - CHAPTER 8 SOLUTIONS...

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CHAPTER 8 SOLUTIONS TO ASSIGNED HOMEWORK Exercise 8–24 1. Unit direct materials cost ( 75,000 $615,000 ) $ 8.20 Unit direct labor cost ( 75,000 $105,000 ) 1.40 Unit variable overhead cost ( 75,000 $78,750 ) 1.05 Unit fixed overhead cost ( 75,000 $270,000 ) 3 .60 Absorption cost per unit $14.25 2. Unit direct materials cost ( 75,000 $615,000 ) $ 8.20 Unit direct labor cost ( 75,000 $105,000 ) 1.40 Unit variable overhead cost ( 75,000 $78,750 ) 1 .05 Variable cost per unit $ 10 .65 3. Absorption-costing ending inventory = $14.25 × 400 = $5,700 4. Variable-costing ending inventory = $10.65 × 400 = $4,260 Exercise 8–25 1. Unit direct materials cost $ 7.50 Unit direct labor cost 2.75 Unit variable overhead cost 3.90 Unit fixed overhead cost 4 .50 Absorption cost per unit $18 .65 2. Unit direct materials cost $ 7.50 Unit direct labor cost 2.75 Unit variable overhead cost 3 .90 Variable cost per unit $14 .15
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Exercise 8–25 (Concluded) 3. Absorption-costing income: Sales ($30 × 74,600). ............................................. $2,238,000 Less: Cost of goods sold ($18.65 × 74,600). ....... 1,391,290 Gross margin. .................................................. $ 846,710 Less: Variable selling expense ($2 × 74,600). .......... $ 149,200 Fixed selling expense. .................................... 56,500 Fixed administrative expense. ....................... 213,000 418,700 Operating income. ................................................ $ 428,010 4. Variable-costing income: Sales ($30 × 74,600). ............................................. $2,238,000 Less variable costs: Cost of goods sold ($14.15 × 74,600). ............ $1,055,590 Selling expense ($2 × 74,600). ........................ 149,200 1,204,790 Contribution margin. ............................................ $1,033,210 Less fixed costs: Fixed overhead ($4.50 × 80,000). .................... $ 360,000 Selling and administrative expenses. ............ 269,500 629,500 Operating income. ................................................ $ 403,710 Exercise 8–29 Trendy Inc. Segmented Income Statement For the Coming Year Sweaters Jackets Total Sales $ 300,000 $ 420,000 $ 720,000 Variable cost of goods sold (180,000) (200,000) (380,000) Variable selling expense (15,000 ) (21,000 ) (36,000 ) Contribution margin $ 105,000 $ 199,000 $ 304,000 Less direct fixed expenses: Direct fixed overhead (25,000) (40,000) (65,000) Direct selling and administrative (20,000 ) (50,000 ) (70,000 ) Segment margin $ 60,000 $ 109,000 $ 169,000 Less common fixed expenses: Common fixed overhead (45,000) Common selling and administrative (15,000 ) Operating income $ 109,000
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This note was uploaded on 10/20/2011 for the course ACC 222 taught by Professor Brewer during the Spring '08 term at Miami University.

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Ch 8 Solutions to Assigned Homework - CHAPTER 8 SOLUTIONS...

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