NOTATION USED IN CHAPTER 3 SOLUTIONS
Variable cost per unit
Contribution margin per unit
Target operating income
(10 min.) CVP computations.
Schedule of Cost of Goods Manufactured
The following data relate to Bills Baggage Company for the year ended December 31, 2012:
Based on the information above, in good form, prepare a schedule of cost of goods manufactured, a schedule of
cost of goods sol
(25 min.) ABC, cost hierarchy, service.
Output unit-level costs
a. Direct-labor costs, $240,000
b. Equipment-related costs (rent, maintenance, energy, and so on), $400,000
These costs are output unit-level costs because they are incurred on each u
MASTER BUDGET AND RESPONSIBILITY ACCOUNTING
(30 min.) Revenues and production budget.
INVENTORY COSTING AND CAPACITY ANALYSIS
Variable and absorption costing, explaining operating-income differences.
Key inputs for income statement computations are:
Goods available for sale
DECISION MAKING AND RELEVANT INFORMATION
(30 min.) Special order, activity-based costing.
Award Plus operating income under the alternatives of accepting/rejecting the
special order are:
Without OneWith OneTime Only