During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows:
|Year 1||Year 2|
|Sales (@ $63 per unit)||$||1,134,000||$||1,764,000|
|Cost of goods sold (@ $42 per unit)||756,000||1,176,000|
|Selling and administrative expenses*||308,000||338,000|
|Net operating income||$||70,000||$||250,000|
* $3 per unit variable; $254,000 fixed each year.
The company’s $42 unit product cost is computed as follows:
|Variable manufacturing overhead||4|
|Fixed manufacturing overhead ($368,000 ÷ 23,000 units)||16|
|Absorption costing unit product cost||$||42|
Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.
Production and cost data for the first two years of operatons are:
|Year 1||Year 2|
1. Using variable costing, what is the unit product cost for both years?
2. What is the variable costing net operating income in Year 1 and in Year 2?
3. Reconcile the absorption costing and the variable costing net operating income figures for each year.
Choose any 2-3 categories and explain how these social media techniques can benefit an organization from a communication management perspective. Please use examples to su...Nov 09 2017
Souring of wine occurs when ethanol is converted to acetic acid by oxygen by the following reaction:C2H5OH + O2 --> CH3COOH + H2OA 1.00 L bottle of wine, labeled as 8.5% ...Aug 22 2020
In August 1976, tuberculosis was diagnosed in a high school student (INDEX CASE) in Corinth, Mississippi. Subsequently, laboratory studies revealed that the student’s dis...Aug 02 2020
A multiproduct firm’s cost function was recently estimated asC(Q 1 , Q 2 ) 75 0.25Q 1 Q 2 0.1Q 12 0.2Q 2 2a. Are there economies of scope in producing 10 units of...Apr 29 2020
Identify or list the four major tools used to control monetary policyDescribe how changes in the Fed’s policy tools leads to expansionary and restrictive or contraction...Mar 17 2020
Calculate the mass flow and the annulus area at the rotor outlet for an axial compressor stage. The flow enters the rotor without swirl, at a Mach number of 0.4, at a sta...Jun 06 2020
Dust mite allergies. Exercise 4.23 (p. 188) gives the probability distribution for the number x of homes with high dust mite levels. The probability distribution is repro...Aug 07 2020
The payment of a cash dividend will be depicted on the statement of cash flows as a: A. cash inflow from an operating activity. B. cash outflow for an investing activi...Jan 09 2020
As interest rates rise, the prices of existing bonds will:a. increaseb. decreasec. remain the samed. any of the aboveApr 13 2021
The manager of a crew that installs carpeting has tracked the crew’s output over the past several weeks, obtaining these figures:WeekCrew SizeYards Installed1210024673397...Aug 28 2020