3 Required information Use the following information for the Exercise below. (Static) [The following information applies to the questions displayed below.] 5 points Barnes Company reports the following for its product for its first year of operations. Direct materials 35 per unit eBook Direct labor $ 25 per unit Variable overhead $ 10 per unit Print Fixed overhead $ 48, 000 per year Variable selling and administrative expenses $ 3 per unit References Fixed selling and administrative expenses $ 20, 000 per year Exercise 19-4 (Static) Computing cost per unit at different production levels LO P1, P2 Compute total product cost per unit using absorption costing for the following production levels: (a) 2,000 units, (b) 2,400 units, and (c) 3,000 units. Units produced Product cost per unit using absorption costing 2,000 2,400 3,000 Total product cost per unit4 Exercise 19-7 (Static) Income reporting under absorption costing and variable costing LO P2 5 Sims Company began operations on January 1. Its cost and sales information for this year follow. points Direct materials $ 40 per unit Direct labor $ 60 per unit eBook Variable overhead $ 30 per unit Fixed overhead $ 7,000, 000 per year Hint Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,250, 000 per year Print Units produced 100, 000 units Units sold 70,000 units References Sales price $ 350 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing.Complete this question by entering your answers in the tabs below. Required 1 Required 2 5 points Prepare an income statement for the year using variable costing. SIMS COMPANY eBook Income Statement (Variable Costing) Hint Print References 0 Income (loss) 4 Complete this question by entering your answers in the tabs below. oints Required 1 Required 2 Prepare an income statement for the year using absorption costing. eBook Hint SIMS COMPANY Income Statement (Absorption Costing) Print References $ 5 Exercise 19-14 (Static) Absorption costing and overproduction LO C1 5 Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses points absorption costing. Sales price $ 56.00 per unit Direct materials $ 9.00 per unit Direct labor $ 6.50 per unit eBook Variable overhead $ 11.00 per unit Fixed overhead $ 720,000 per year 1. Compute gross profit assuming (a) 60,000 units are produced and 60,000 units are sold and (b) 80,000 units are produced and Hint 60,000 units are sold. 2. By how much would the company's gross profit increase or decrease from producing 20,000 more units than it sells? Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Compute gross profit assuming (a) 60,000 units are produced and 60,000 units are sold and (b) 80,000 units are produced and 60,000 units are sold. (a) 60,000 Units (b) 80,000 Units Produced and 60,000 Produced and 60,000 Units Sold Units Sold Gross profit 5 Exercise 19-14 (Static) Absorption costing and overproduction LO C1 5 Jax Incorporated reports the following data for its only product, The company had no beginning nished goods inventory and it uses points absorption costing. Sales price $ 56.99 per unit Direct materials $ 9.99 per unit Q Direct labor 1' 6.59 per unit eBook Variable overhead $ 11.99 per unit Fixed overhead $ 729,999 per year' @ 1. Compute gross profit assuming (a) 60,000 units are produced and 60000 units are sold and (D) 80,000 units are produced and H\" 0,000 units are sold. 2. By how much would the company's gross prot increase or decrease from producing 20,000 more units than it sells? it! Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 By how much would the company's gross prot increase or decrease From producing 20,000 more units than it sells? Exercise 19-15 (Static) Absorption costing and overproduction LO C1 5 A manufacturer reports direct materials of $5 per unit, direct labor of $2 per unit, and variable overhead of $3 per unit. Fixed overhead points is $120,000 per year, and the company estimates sales oi12,000 units at a sales price of $25 per unit for the year. The company has no beginning nished goods inventory, E 1. If the company uses absorption costing, compute gross profit assuming (5)12000 units are produced and 12,000 units are sold and {12) 15,000 units are produced and 12,000 units are sold. 2. ifthe company uses variable costing, now much would contribution margin differ if the company produced 15,000 units instead of producing 12,000? Assume the company sells 12,000 units, ant'Calculations are not required, Complete this question by entering your answers in the tabs below. References Required 1 Required 2 If the company uses absorption costing, compute gross profit assuming (a) 12,000 units are produced and 12,000 units are sold and (b) 15,000 units are produced and 12,000 units are sold. Gross prot Required 2 > 6 Exercise 19-15 (Static) Absorption costing and overproduction LO C1 5 A manufacturer reports direct materials of $5 per unit, direct labor of $2 per unit, and variable overhead of $3 per unit. Fixed overhead points is $120,000 per year, and the company estimates sales of 12,000 units at a sales price of $25 per unit for the year. The company has no beginning finished goods inventory. 1. If the company uses absorption costing, compute gross profit assuming (a) 12,000 units are produced and 12,000 units are sold and (b) 15,000 units are produced and 12,000 units are sold. eBook 2. If the company uses variable costing, how much would contribution margin differ if the company produced 15,000 units instead of producing 12,000? Assume the company sells 12,000 units. Hint: Calculations are not required. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 If the company uses variable costing, how much would contribution margin differ if the company produced 15,000 units instead of producing 12,000? Assume the company sells 12,000 units. Hint: Calculations are not required. Contribution margin 7 Exercise 19-16 (Static) Target pricing LO P3 5 Huds Incorporated reports the information below on its product. The company uses absorption costing and has a target markup of points 40% of absorption cost per unit. Direct materials $ 100 per unit Direct labor $ 30 per unit Variable overhead $ 8 per unit ebook Fixed overhead $ 600, 000 per year Variable selling and administrative expenses $ 3 per unit Fixed selling and administrative expenses $ 120, 000 per year Units produced 50,000 units per year Hint Units sold 50, 000 units per year Compute the target selling price per unit under absorption costing. Print Per unit References Product cost per unit using absorption costing Target markup per unit Target selling price per unitReferences Exercise 19-17 {Static} Analyzing a special offer for a service company L0 P3 Grand Garden is a hotel with iSO suites. Its regular suite price is $250 per night per suite. The hotel's total cost per night is $140 per suite and consists 0fthe followmg. Variable cost $ 116 Fixed cost 39 Total cost per" night per' suite 1' 146 The hotel manager receives an offer to hold the local Bikers' Club meeting at the hotel in March, which is the hotel's slow season with a low occupancy rate per night. The Bikers' Club would reserve 'ISO suites for one night it the hotel accepts a price ot $i25 per night. (a) What is the contribution margin from this special offer? (b) Should the Bikers' Club offer be accepted or rejected? Revenues from special offer Should the Bikers' Club offer be accepted or rejected? Exercise 19-20 (Static) Contribution margin ratio by sales territory LO A1 5 Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. points The company sold 500 bikes in each territory. Per unit West Coast East Coast Sales price $ 1,888 $ 968 g Variable cost O'F goods sold 548 548 eEook Variable selling and administrative expenses 128 68 5. Compute contribution margin (in dollars} for each sales territory. :1 b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? i'll'l rli Complete this question by entering your answers in the tabs below. References Required A Required B Compute contribution margin (in dollars) for each sales territory. eeeeeeeeee Contribution margin Required B > Exercise 19-20 (Static) Contribution margin ratio by sales territory LO A1 5 Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. points The company sold 500 bikes in each territory. Per- unit West Coast East Coast Sales price $ 1,888 $ 968 A Variable cost of goods sold 548 548 eEook Variable selling and administrative expenses 128 68 5. Compute contribution margin (in dollars} for each sales territory. F? b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? l'll'lE lli Complete this question by entering your answers in the tabs below. References Required A Required B Compute contribution margin ratio for each sales territory. Which sales territory has the better oontribution margin ratio? (Round your answers to 1 cecirnal place.) Contribution margin ratio Which sales territory has the be er contribution margin ratio? ( Required A