Solving case problem-absorption and variable costing

Assignment Help Cost Accounting
Reference no: EM131664537

Question: Absorption and variable costing. (CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (nonmanufacturing) cost was $13 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $420,000. Miami sold 170,000 units of product at $41 per unit.

1. Miami's 2017 operating income using absorption costing is

(a) $600,000,

(b) $360,000,

(c) $780,000,

(d) $1,020,000, or

(e) none of these. Show supporting calculations.

2. Miami's 2017 operating income using variable costing is

(a) $1,100,000,

(b) $600,000,

(c) $360,000,

(d) $780,000, or

(e) none of these. Show supporting calculations.

Reference no: EM131664537

Questions Cloud

Probable microbes present : Cassandre, the owner of Brilliant Minds daycare, she reports that she has seen an increase of sick kids in the last two days.
Reflect on two recent professional interactions : BUSN20017- Effective Business Communications - Reflective Practice Assessment-Developing your Communication Competency
What kind of image does this work give of colorado and west : What kind of image does this work give of Colorado and the West? Is this image realistic, in your opinion, or does it romanticize Colorado in some way?
What do you think will happen to this reaction : A student sets up a PCR and sets the denaturation temperature at 95 degress C, annealing temperature to 70 degress C and the extension temperature
Solving case problem-absorption and variable costing : Absorption and variable costing. (CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of operation.
Isolate a separate colony of bacteria : . Describe thoroughly two mistakes that might have been made.
What are some ways you might seek to be understood : What are some ways you might seek to be understood? How can this thought experiment help you in your daily life?
Conduct a job analysis on your own job : Conduct a job analysis on your own job, using existing data, resulting in the development of a job description, a job specification.
Microbiology important to week topic : What can you tell us about Joseph Lister, and why are his contributions to microbiology important to this week's topic?

Reviews

Write a Review

Cost Accounting Questions & Answers

  Determine the annual cost and average hourly cost

Determine the annual cost, average hourly cost, and burden markup of an hourly employee given the following information.

  Evaluate the current ratio and working capital

Evaluate the Current ratio, Working capital, Acid-test ratio, Inventory turnover (times), Days sales in inventory, Accounts receivable turnover, Days sales in receivables, Free cash flow and Average inventory for the given Fiscal Year.

  Determine the range of annual cash inflows

Determine the range of annual cash inflows for each of the two projects and construct a table similar to this for the NPVs for each project. Include therangeof NPVs for each project.

  What is the reorder point for lawn mower engines

What is the reorder point for lawn mower engines? Compute the number of lawn mower engines that should be produced per setup to minimize total setup and carrying costs for this product.

  What is fixed cost as defined for activity-based-costing

What steps are involved in planning the costing framework, how much time should be expended on account review and what is fixed cost as defined for Activity-Based-Costing("ABC"

  Prepare a flexible budget performance report

Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. List fixed and variable expenses separately.

  How much was manufacturing overhead

Equivalent units for conversion costs for the month in the first processing department - cost per equivalent unit for materials for the month in the first processing department is closest to

  Calculate the years net earnings under accrual basis

Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the accrual basis of accounting.

  How much revenue will stelle recognize

The company spent an accumulated total of €6 million. How much revenue will Stelle recognize in Year 3 - How much revenue will Stelle recognize in Year 2?

  How much interest revenue did bermudez earn in 2010

Bermudez Leasing Company purchased specialized equipment from Holmes Company on December 31, 2009 for $400,000. On the same date, it leased this equipment to Berry Company for 5 years, the useful life of the equipment.

  Determine the equivalent units for each factor of production

Determine the equivalent units for each factor of production and calculate the cost per equivalent whole unit for each factor of production

  Compute the amount of underapplied or overapplied overhead

Compute the amount of underapplied or overapplied overhead as of January 31 and transfer it to the Cost of Goods Sold account.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd