Home / Questions / Acme Novelty Company produces coin purses and key chains Selected data for the past year a...
Acme Novelty Company produces coin purses and key chains. Selected data for the past year are as follows:
|
|
Coin Purse |
Key Chain |
|
Production (units) |
100,000 |
200,000 |
|
Sales (units) |
90,000 |
210,000 |
|
Selling price |
$5.50 |
$4.50 |
|
Direct labor hours |
50,000 |
80,000 |
|
Manufacturing costs: |
|
|
|
Direct materials |
$ 75,000 |
$100,000 |
|
Direct labor |
250,000 |
400,000 |
|
Variable overhead |
20,000 |
24,000 |
|
Fixed overhead |
50,000 |
80,000 |
|
Nonmanufacturing costs: |
|
|
|
Variable selling |
30,000 |
60,000 |
|
Direct fixed selling |
35,000 |
40,000 |
|
Common fixed selling |
25,000 |
25,000 |
Budgeted fixed overhead for the year, $130,000, equaled the actual fixed overhead. Fixed overhead is assigned to products using a plant wide rate based on expected direct labor hours, which were 130,000. The company had 10,000 key chains in inventory at the beginning of the year. These key chains had the same unit cost as the key chains produced during the year.
Required:
1. Compute the unit cost for the coin purses and key chains using the variable costing method. Compute the unit cost using absorption costing.
2. Prepare an income statement using absorption costing.
3. Prepare an income statement using variable costing.
4. Explain the reason for any difference between absorption- and variable-costing operating incomes.
5. Prepare a segmented income statement using products as segments.
Jun 24 2020 View more View Less
One of the arguments against allowing sharia courts in the United States is that we would no longer have a common legal framework within our society. Do you agree or disagree? Why?
Aug 18 2021Identify and briefly describe three m-commerce applications you have used.
Jul 15 2020Now let's think about what many consider to be Phelps's primary contribution to this discussion: the effect of expectations on the Phillips curve. We can use a modified v...
Jul 06 2021Shall a layer of wearing course or additional thickness be designed
Jul 06 2020Suppose a local bank increases the fees they charge for their bank accounts by 10 percent. In response, the demand for their bank a to 10,000. What is price elasticity of...
Apr 14 2020To create the shopping Alfred's Department Store has a staff of interior designers who rearrange product displays, select new music to play throughout the store and adjus...
Apr 02 2020In Preventing a Brave New World, Leon Kass concludes that reproductive and therapeutic cloning of human embryos is unethical. What are the exact steps in Kass's argument ...
Jul 21 2020List the sources of law.
Aug 11 2021Solve not in excel and provide all the formulasYou have been asked to evaluate the quality of investments at an some inc., a firm that open 2 business – books and pens. Y...
Aug 31 2020