Operating income under absorption versus variable costing

Assignment Help Accounting Basics

Reference no: EM1363018

Precision Numbers, Inc., manufactures pocket calculators. Costs incurred in making 25,000 calculators in April included $85,000 of fixed manufacturing overhead. The total absorption cost per calculator was $12.50.

Required:
(a) Calculate the variable cost per calculator. (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

Variable cost per calculator $

(b) The ending inventory of pocket calculators was 1,850 units higher at the end of the month than at the beginning of the month. By how much and in what direction (higher or lower) would operating income for the month of April be different under variable costing than under absorption costing? (Do not round your intermediate calculations. Omit the "tiny_mce_markerquot; sign in your response.)

Operating income under variable costing will be $, than under absorption costing.

(c) Express the pocket calculator cost in a cost formula. (Do not round your intermediate calculations. Round your answers to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)
Total cost = $ + ($ / calculator x number of calculators)

Reference no: EM1363018

Questions Cloud

What is the minimum pressing force that must be used : What is the minimum pressing force that must be used.

Experiences that would be helpful in running a small busines : Analyze the classes you've taken that would help you run a small business and work experience which would be helpful in running a small business

Draw flowchart to input all mid-term marks : Draw a flowchart to input 10 numbers and then determine the highest and lowest number among them. Draw a flowchart to input all the mid-term marks of computing studies class to determine it average.

Nutritional roles in the body : Besides fat- and water-soluble vitamins being able to be dissolved in fat and water, respectively, what other differences exist between these two types of vitamins? Please give examples of each type and their nutritional roles in the body.

Operating income under absorption versus variable costing : Precision Numbers, Inc., manufactures pocket calculators. Costs incurred in making 25,000 calculators in April included $85,000 of fixed manufacturing overhead. The total absorption cost per calculator was $12.50.

In what time interval does it reach this velocity : In what time interval does it reach this velocity. How high would the insect jump if air resistance were negligible.

Biild a concept to address driving and texting : Explain How will you go about building this concept and what factors must you consider as you build your concept?

Define beaten the market term : Suppose you are planning hiring an investment advisor to help you manage your portfolio. This advisor tells you that she has consistently "beaten the market" over the last five years.

Six dimensions of wellness : How does the role of food choice and eating relate to the Six Dimensions of Wellness?

User Account

All Pages