Bracey Company manufactures and sells one product. The following information pertains to the company's first year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bracey Company manufactures and sells one product. The following information pertains to the company's first year of operations: Variable cost per unit: Direct materials Fixed costs per year: Direct labor $ 32 $ 450,500 Fixed manufacturing overhead Fixed selling and administrative expenses $ 431,950 $ 74,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Bracey produced 26,500 units and sold 24,300 units. The selling price of the company's product is $72 per unit. Required: 1. Assume the company uses super-variable costing: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. 2. Assume the company uses a variable costing system that assigns $17.00 of direct labor cost to each unit produced: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. 3. Assume the company uses an absorption costing system that assigns $17.00 of direct labor cost and $16.30 of fixed manufacturing overhead cost to each unit produced: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. 4. a. Reconcile the difference between the super-variable costing and variable costing net operating incomes. b. Reconcile the difference between the super-variable costing and absorption costing net operating incomes. Bracey Company manufactures and sells one product. The following information pertains to the company's first year of operations: Variable cost per unit: Direct materials Fixed costs per year: Direct labor $ 32 $ 450,500 Fixed manufacturing overhead Fixed selling and administrative expenses $ 431,950 $ 74,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Bracey produced 26,500 units and sold 24,300 units. The selling price of the company's product is $72 per unit. Required: 1. Assume the company uses super-variable costing: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. 2. Assume the company uses a variable costing system that assigns $17.00 of direct labor cost to each unit produced: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. 3. Assume the company uses an absorption costing system that assigns $17.00 of direct labor cost and $16.30 of fixed manufacturing overhead cost to each unit produced: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. 4. a. Reconcile the difference between the super-variable costing and variable costing net operating incomes. b. Reconcile the difference between the super-variable costing and absorption costing net operating incomes.
Expert Answer:
Related Book For
Managerial Accounting for Managers
ISBN: 978-1259578540
4th edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
Posted Date:
Students also viewed these accounting questions
-
Suppose that the current daily volatilities of asset A and asset B are 2.76% and 2.44%, respectively. The prices of the assets at close of trading yesterday were $35 and $52 and the estimate of the...
-
Consider the following statement about real options: Certain real options allow companies to change capacity output in response to changing market conditions. True or False: The preceding statement...
-
Bracey Company manufactures and sells one product. The following information pertains to the companys first year of operations: Variable cost per unit: Direct materials $ 39 Fixed costs per year:...
-
Sugar (C12H22O11) is a molecular compound that stays together inwater, while NaCl and MgSO4?7H2O are ionic compounds that dissociate into cations andanions as illustrated in the NaCl example below:...
-
Gourmet Coffee (GC) is a specialty coffee shop that sells roasted coffee beans. It buys green beans, roasts them in its shop, and then sells them to the consumer. GC estimates that it sells about...
-
The dotplot below depicts the last digits of the weights of 153 males in Data Set 1 "Body Data." Do those digits appear to be from a normally distributed population? If not, does the large sample...
-
Forgetting tax considerations, can a capital decrease enhance the value of the companys operating assets? the value of its shares?
-
Marin County Enterprises has a monopoly on the production of lunar-powered homes and has the normal U-shaped average cost curve. At its present profit-maximizing output and price, it is able to earn...
-
C FUNCTIONS etry to find angles of elevation or depression in... orrect.
-
Airline ABC received a package from a customer who wanted to ship it from Tokyo, Japan to New York city, US. The weight of it is 135kg and the volume is 1.8 m 3 . The published rate is $10 per kg....
-
Choose a market that has been impacted by the Russia-Ukraine and Israel-Palestine War, or pandemic and the subsequent supply chain delays and disruptions because of those events. Find a current...
-
Rewrite each of the following expressions in factored form by first factoring a out of the expression. For example, x - 3x - 10x can be written as x(x - 3x - 10), and then rewritten as x(x + 2)(x 5)....
-
calculate Weekly Sales PLAN $ last row BOM $ Plan 160,000 210,000 200,000 150,000 240,000 225,000 Sales $ PLAN 43,243. 50,000 24 Sales $ ACTUAL 37,621. 45,000 62 52,631. 58 53,571.4 80,000 56,250 3...
-
Sam's Ice Creams, a cottage country favourite in Northern Ontario, has launched a new range of ice creams branded as "Summer Flavours." To capitalize on the cottage and tourism season from May to...
-
Use the following information and data for the next several questions. Copy and paste the table into Excel. If you have trouble pasting correctly, try "Paste Special-Unicode Text." Given the...
-
TOPIC: DRIVING LICENCE INSTITUTE ISSUE You need to Develop a Training Module regarding "DRIVING LICENCE INSTITUTE ISSUE" to motivate and learning space for the people/participants who are related to...
-
In Exercises find dy/dx by implicit differentiation. xy - y = x
-
Dhariwal Industries is currently reviewing its variance analysis process. Over the years, the company has used variance analysis to help control and manage costs and activities within the company....
-
Elsies Muffins makes two types of muffin that are sold to grocery stores: the standard muffin (which comes in various flavours such as carrot, chocolate chip, bran, and apple spice) and the gourmet...
-
Which of the following would indicate a high level of supplier power in an industry* a. Many suppliers in the industry provide similar products. b. A companys sales represent a high portion of the...
Study smarter with the SolutionInn App