[The following information applies to the questions displayed below.] Diego Comp
ID: 2424763 • Letter: #
Question
[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $72 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 55,000 units and sold 50,000 units.
The company sold 37,000 units in the East region and 13,000 units in the West region. It determined that $290,000 of its fixed selling and administrative expenses is traceable to the West region, $240,000 is traceable to the East region, and the remaining $77,000 is a common fixed cost. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.
1.
value:
10.00 points
Required information
2.
value:
10.00 points
Required information
3.
value:
10.00 points
Required information
References
eBook & Resources
WorksheetLearning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method.Learning Objective: 06-03 Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ.
Difficulty: 2 MediumLearning Objective: 06-02 Prepare income statements using both variable and absorption costing.Learning Objective: 06-04 Prepare a segmented income statement that differentiates traceable fixed costs from common fixed costs and use it to make decisions.
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4.
value:
10.00 points
Required information
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eBook & Resources
WorksheetLearning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method.Learning Objective: 06-03 Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ.
Difficulty: 2 MediumLearning Objective: 06-02 Prepare income statements using both variable and absorption costing.Learning Objective: 06-04 Prepare a segmented income statement that differentiates traceable fixed costs from common fixed costs and use it to make decisions.
Check my work
5.
value:
10.00 points
Required information
References
eBook & Resources
WorksheetLearning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method.Learning Objective: 06-03 Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ.
Difficulty: 2 MediumLearning Objective: 06-02 Prepare income statements using both variable and absorption costing.Learning Objective: 06-04 Prepare a segmented income statement that differentiates traceable fixed costs from common fixed costs and use it to make decisions.
Check my work
6.
value:
10.00 points
Required information
References
eBook & Resources
WorksheetLearning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method.Learning Objective: 06-03 Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ.
Difficulty: 2 MediumLearning Objective: 06-02 Prepare income statements using both variable and absorption costing.Learning Objective: 06-04 Prepare a segmented income statement that differentiates traceable fixed costs from common fixed costs and use it to make decisions.
Check my work
7.
value:
10.00 points
Required information
Diego Company manufactures one product that is sold for $72 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 55,000 units and sold 50,000 units.
Explanation / Answer
Answer; unit product cost under vairiable costing = direct material+direct labour+variable manufacturing overheads
=23+14+3 = $40
2. What is the unit product cost under absorption costing?
Answer : unit product cost under absorption costing = direct material +direct labour+variable manufacturing cost +fixed manufacturing cost
=23+14+3+14= $54
Answer: contribution margin = selling price per unit - variables cost per unit
=72-40 = $32
(1377000)
5. What is the company’s total gross margin under absorption costing?
Answer contribution margin = selling price per unit - cost per unit
=72-54 = $18
7.What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?
net operating loss under variable costing = (427000)
net operating profit under absorption costing= 43000
differnce between both costing = (470000)
1. What is the unit product cost under variable costing?Related Questions
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