Only 3 questions. Please do all questions. I only need answer. Thank you! Requir
ID: 2566710 • Letter: O
Question
Only 3 questions. Please do all questions. I only need answer. Thank you!
Required information The Foundational 15 [LO6-1, LO6-2, LO6-3, LO6-4, L06-5] The following information applies to the questions displayed below Diego Company manufactures one product that is sold for $76 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 47,000 units and sold 42,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead 26 10 Variable selling and administrative Pixed costs per year: $ 987,000 Fixed manufacturing overhead Fixed selling and administrative expense 475,000 The company sold 32,000 units in the East region and 10,000 units in the West region. It determined that $210,000 of its fixed selling and administrative expense is traceable to the West region, $160,000 is traceable to the East region, and the remaining $105,000 is a common fixed expense. 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.Explanation / Answer
Solution7.
a. Statement Of Net Operating Income Under Variable Costing
a. Statement Of Net Operating Income Under Absorbtion Costing
c. Statement Of Difference of Net Operating Income under Variable and Absorbtion Costing
13. Statement Of Segmented Income
Common Fixed Expenses not traceable to Reigons
(105,000 + 987,000)
(1,092,000/42,000)
*32,000
1,092,000/42,000)
*10,000
14.If West Region is Dropped, Statement of Profit from Revised Sales in East Region
Net Profit will further decrease by $75,600 and the loss to the company would now be $109,600.
Particulars Working Amount ($) Sales 42,000*76 3,192,000 Less : Variable Cost Direct Materials 42,000*26 1,092,000 Direct labour 42,000*10 420,000 Manufacturing Overhead 42,000*2 84,000 Selling and Administrative 42,000*4 168,000 Contribution Margin 1,428,000 Less : Fixed Manufacturing Overhead 987,000 Fixed selling and Administrative Expenses 475,000 Net Operating Income (34,000)Related Questions
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