Solution-What was the operating income for that year

What was the operating income for that year

Assignment Help Cost Accounting

Reference no: EM132549529

Sheffield Industries makes artificial Christmas trees. The unit costs for producing a tree are: Direct materials $27 Direct labor $13 Variable overhead $13 Fixed overhead $5 The company also incurs $2 per tree in variable selling and administrative costs and $3,100 in fixed marketing costs. At the beginning of the year the company had 830 trees in the beginning Finished Goods Inventory. The company produced 2,140 trees during the year. Sales totaled 1,400 trees at a price of $103 per tree.

Question (a) Based on absorption costing, what was the company's operating income for the year?

Question (b) Based on variable costing, what was the company's operating income for the year?

Question (c) Assume that in the following year the company produced 2,140 trees and sold 2,550. Based on absorption costing, what was the operating income for that year? Based on variable costing, what was the operating income for that year?

Reference no: EM132549529

Questions Cloud

Question - Disadvantages of Financial Leverage : Question - Disadvantages of Financial Leverage. Why would firms with high ROAs not keep leveraging up their firm by borrowing

Discuss difference between idle time and overtime premium : Discuss the difference between idle time and overtime premium. In your discussion, clearly spell out the effect of each on productivity and costs.

Identify five key characteristics of fraudsters : Based on KPMG's analysis in "Global Profiles of the Fraudsters" of the 596 fraudsters member firms investigated, identify five key characteristics of fraudsters

Why do you think the results were successful : Discuss one experience you have had with coaching a person or a group and one experience leading a person or group. Were the experiences different?

What was the operating income for that year : Based on absorption costing, what was the operating income for that year? Based on variable costing, what was the operating income for that year?

Record the harvesting of the agricultural produce : In 2015, ABC Limited established and commenced operation of an Flower business in Suva. Record the harvesting of the agricultural produce

How the corrective action should prevent recurrence : How the corrective action helped to restore stability to the financial system? How the corrective action should prevent recurrence of a similar crisis?

Prepare operating statements for each of the periods : Prepare operating statements for each of the periods 1 to 4, based on absorption costing principles. Prepare operating statements for each of the periods

What marginal tax rate will apply to Don : What marginal tax rate will apply to Don for the income tax year ended 30 June 2019? Do not include the Medicare Levy in this rate

User Account

All Pages

What was the operating income for that year

Reference no: EM132549529

Reference no: EM132549529

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT