User Account

All Pages

What is the unit product cost under absorption costing

Assignment Help Accounting Basics
Reference no: EM133056193

Question - Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced40,000 units and sold 35,000 units.

Variable costs per unit: Manufacturing: Direct materials $24

Direct labour $14

Variable manufacturing overhead $2

Variable selling and administrative $4

Fixed costs per year: Fixed manufacturing overhead $800,000

Fixed selling and administrative expenses $496,000

Required - Answer each question independently based on the original data unless instructed otherwise.

1. What is the unit product cost under variable costing?

2. What is the unit product cost under absorption costing?

3. What is the company's total contribution margin under variable costing?

4. What is the company's net operating income under variable costing?

5. What is the company's total gross margin under absorption costing?

6. What is the company's net operating income under absorption costing?

7. What is the company's break-even point in unit sales? Is it above or below the actual sales volume? Compare the break-even sales volume to your answer for question 6and comment.

8. What is the CM ratio under variable costing?

Reference no: EM133056193

Questions Cloud

What is the projected stock price : Vitality Vancouver Inc. (VVI) has recently raised debt capital through long-term financing. The bond indenture includes issuing 8% coupon bonds on the market th
Calculate the expected portfolio return : Suppose you are a US investor looking for international diversification opportunities. Your investment advisor offers you an international equity index that exp
Information technology for fast-growth e-commerce : Imagine that you are the head of information technology for a fast-growth e-commerce start-up.
Literature on entrepreneurial management : Literature on entrepreneurial management - discuss entrepreneurial management and how entrepreneurial management can enhance the growth of SMEs
What is the unit product cost under absorption costing : Fixed costs per year: Fixed manufacturing overhead $800,000. What is the unit product cost under absorption costing
What maturity bond must it purchase : An insurance company must make payments to a customer of $1 million in one year and $400,000 in four years. The yield curve is flat at 10%.
Difference between earning yield and capital gain : What is the difference between earning yield and capital gain? How does the treasury bond yield affect each of them?
Components of public financial management : 1. What is Public Financial Mgt. and why is it important? 2. What are the components of public financial management
Sharing economy and on-demand services : Why have some municipalities put restrictions on innovations in the sharing economy and in on-demand services? What is cyberloafing?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate a and b outside basis and capital accounts

Calculate A and B's outside basis and capital accounts for the first year of operations using the traditional method

  Cherokee company acquired a machine on january 1 2006 that

cherokee company acquired a machine on january 1 2006 that cost 2700 and had an estimated residual value of 200.

  Sin tax on cigarettes and alcohol

Please help with writing a research paper that examines an issue of current relevance to public policymaking.

  Show vertical analysis using given data

Operating data for Joshua Corporation are presented below. Instructions: Prepare a schedule showing a vertical analysis for 2017 and 2016.

  What amount of overhead was applied to production

The rate is 250 percent of direct labor cost. What amount of overhead was applied to production in each of the three months

  Explain which GAAP principle applies to this scenario

Did the agent correctly record the transaction under GAAP? Why or why not? Explain which GAAP principle applies to this scenario

  Hester company budgets on an annual basis for fiscal year

Three units of raw material are needed to produce each unit of finished product

  What is the type of fraud being investigated

What is the type of fraud being investigated? Explain the rationale. Who are the possible perpetrator(s) of the cash shortages? Explain.

  Explain the basic concept of free cash flow

Discussion: Budgets and Cash Flow - Discuss the importance of budgets for an organization or department. Explain the basic concept of free cash flow

  What is the annual breakeven point in sales amount

What is the annual breakeven point in sales amount and in unit sales and what would be the store's net income if 55,000 toys were sold

  How much is the cost of goods sold

Cost of Goods Manufactured for the year 2015 has already been calculated and is $210,000. For the year 2015, how much is the Cost of Goods Sold

  TACC615 Professional Accounting Capstone Assignment

TACC615 Professional Accounting Capstone Assignment Help and Solution, Australian National Institute of Management and Commerce - Assessment Writing Service

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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