. Using variable costing, calculate the unit product cost. 2. Prepare an income
ID: 2781792 • Letter: #
Question
.
Using variable costing, calculate the unit product cost.
2.
Prepare an income statement using the contribution margin format.
Requirement 1. Using variable costing, calculate the unit product cost. (Round your final answer to the nearest cent.)
Variable
costing
Unit product cost
$143.00
Requirement 2. Prepare an income statement using the contribution margin format.
Autumn, Inc.
Income Statement (Variable Costing)
Month Ended November 30
Sales Revenue
$240,000
Variable Costs:
Variable Cost of Goods Sold
$85,800
Variable Selling and Administrative Costs
Contribution Margin
Operating Income
Units produced and sold
600 units
Sales price
$400
per unit
Direct materials
62
per unit
Direct labor
63
per unit
Variable manufacturing overhead
18
per unit
Fixed manufacturing overhead
10,200
per month
Variable selling and administrative costs
35
per unit
Fixed selling and administrative costs
5,100
per month
.
Using variable costing, calculate the unit product cost.
2.
Prepare an income statement using the contribution margin format.
Explanation / Answer
1.
Unit product cost using variable costing = Direct material + Direct labor + Variable manufacturing overhead = $62 + $63 + $18 = $143 per unit
2.
Autumn, Inc.
Income Statement (Variable Costing)
Month Ended November 30
Sales Revenue ($400 * 600 units)
$ 240,000
Variable Costs:
Variable Cost of Goods Sold ($143*600 units)
$ 85,800
Variable Selling and Administrative Costs ($35*600 units)
$ 21,000
$ 106,800
Contribution Margin
$ 133,200
Fixed costs:
Fixed manufacturing overhead
$ 10,200
Fixed selling and administrative costs
$ 5,100
$ 15,300
Operating Income
$ 117,900
Autumn, Inc.
Income Statement (Variable Costing)
Month Ended November 30
Sales Revenue ($400 * 600 units)
$ 240,000
Variable Costs:
Variable Cost of Goods Sold ($143*600 units)
$ 85,800
Variable Selling and Administrative Costs ($35*600 units)
$ 21,000
$ 106,800
Contribution Margin
$ 133,200
Fixed costs:
Fixed manufacturing overhead
$ 10,200
Fixed selling and administrative costs
$ 5,100
$ 15,300
Operating Income
$ 117,900
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