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3 years ago

Jupiter Corporation incurred fixed manufacturing costs of $18,000 during 2017. Other information for 2017 includes:

Business

1 answer:

Delicious77 [7]3 years ago

3 0

Answer:

Lower by $8,250

Explanation:

The operating income reported will be different as the unit level of inventory increased during the account period .

Denominator rate:

= Fixed manufacturing costs ÷ Budgeted denominator level

= 18,000 ÷ 2,400

= 7.5

Operative income:

= Total Units produced - (Total units sold × Denominator rate)

= 2,700 - (1,600 × 7.5 )

= 1,100 × 7.5

= $8,250

Lower by $8,250 under the variable costing because 8250 of fixed manufacturing cost remain in inventory under absorption.

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Assume that Corn Co. sold 7,500 units of Product A and 2,500 units of Product B during the past year. The unit contribution marg

myrzilka [38]

Answer:

Break-even point (units)= 8,464 units

Explanation:

Giving the following information:

Assume that Corn Co. sold 7,500 units of Product A and 2,500 units of Product B during the past year. The unit contribution margins for Products A and B are $33 and $56, respectively. Corn has fixed costs of $328,000.

First, we need to calculate the proportion of sales:

Product A= 7,500/10,000= 0.75

Product B= 2,500/10,000= 0.25

Now, using the following formula, we can determine the break-even point in units:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Break-even point (units)= 328,000/ (0.75*33 + 0.25*56)

Break-even point (units)= 328,000/38.75

Break-even point (units)= 8,464 units

8 0

3 years ago

The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead co

docker41 [41]

Answer:

Variable manufacturing overhead rate variance = 80,000 favorable

Explanation:

Given:

Overhead rate variance = $1.70 per hour

Total machine hour = 160,000 hour

Actual overhead costs = $192,000

Find:

Variable manufacturing overhead rate variance

Computation:

Variable manufacturing overhead rate variance = [Standard overhead rate - Actual overhead rate]Actual hour

Variable manufacturing overhead rate variance =[1.7 - (192,000 / 160,000)]160,000

Variable manufacturing overhead rate variance = [1.7 - (1.2)]160,000

Variable manufacturing overhead rate variance = [0.5]160,000

Variable manufacturing overhead rate variance = 80,000 favorable

6 0

2 years ago

The meal plan at university A lets students eat as much as they like for a fixed fee of $500 per semester. The average student t

Ksenya-84 [330]

Answer:

The average consumption is higher in University A. than in University B

Explanation:

Marginal cost is known as the cost borne when an extra unit of output is being produced. Sunk cost is the cost once incurred cannot be recovered

The marginal cost at university A is $0 because they dont have to pay anything over and above $500. This $500 is the sunk cost for students at university A. The marginal cost at university B is $2 because they can consume only 250 pounds of food making them careful about the quantity of food they eat.

Sunk cost is not considered while making a decision, so the marginal cost of University A is $0 and that in University B is $2.

Therefore, we are concluding that the average consumption is higher in University A.

3 0

3 years ago

A company developed the following per-unit standards for its product: 2 gallons of direct materials at $8 per gallon. Last month

alekssr [168]

Answer:

Direct material price variance= $1,200 favorable

Explanation:

Giving the following information:

Standard price= $8 per gallon

Last month, 3,000 gallons of direct materials were purchased for $22,800.

To calculate the direct material price variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Actual price= 22,800/3,000= $7.6 per gallon

Direct material price variance= (8 - 7.6)*3,000= $1,200 favorable

5 0

3 years ago

N March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complaint

telo118 [61]

Answer:

Explanation:

The journal entries are shown below:

On March 1

Notes receivable A/c Dr $10,400

To Service revenue A/c $10,400

(Being the acceptance of the note is recorded)

On September 1

Cash A/c Dr $10,868

To Notes receivable A/c $10,400

To Interest revenue A/c $468

(Being the cash collection is recorded)

The computation of the interest revenue is shown below:

= Notes receivable × interest rate × (number of months ÷ total number of months in a year)

= $10,400 × 9% × (6 months ÷ 12 months)

= $468

4 0

3 years ago