1. Bryans Corporation has provided the following data for its two most recent ye
ID: 2532152 • Letter: 1
Question
1.
Bryans Corporation has provided the following data for its two most recent years of operation:
63,000
The unit product cost under variable costing in Year 1 is closest to:
Multiple Choice
$35.00
$24.00
$31.00
$28.00
2.
Danahy Corporation manufactures a single product. The following data pertain to the company's operations over the last two years:
What was the absorption costing net operating income this year?
Multiple Choice
$62,000
$74,000
$70,000
$66,000
Selling price per unit $ 53 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 6 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $63,000
Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 71,000Explanation / Answer
Answer = 1) Caclulation of Unit Cost of Production by using Variable Costing Particulars Amount Cost per Unit Direct Materials $ 13.00 Direct Labour $ 6.00 Variable Manufacturing Cost $ 5.00 Total Manufacturing Variable Cost $ 24.00 Answer = Option 2 = $ 24 Answer =2) Net Operating Income as per variable costing - This year = $ 68,000 Add: Fixed manufacturing overhead costs released from inventory under absorption costing, last year $ 4,000 Less: Fixed manufacturing overhead costs deferred in inventory under absorption costing, this year $ 6,000 Total income as per absorption costing $ 66,000 Answer = Option D = $ 66,000
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