Ch 8 Solutions to Assigned Homework

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

This preview shows pages 1–4. Sign up to view the full content.

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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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
PROBLEMS Problem 8–35 1.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern