Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business,

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Dance Creations charges $33 for each skirt that it sells. During the first month of operation, it made 1,640 skirts and sold 1,520 . Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a contribution margin income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4. Complete a full absorption costing income statement. 6. Suppose next month Dance Creations expects to produce 1,640 hula skirts and sell 1,740 . Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? Complete this question by entering your answers in the tabs below. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. Note: Round your answer to 2 decimal places. Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Dance Creations charges $33 for each skirt that it sells. During the first month of operation, it made 1,640 skirts and sold 1,520. Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a contribution margin income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4. Complete a full absorption costing income statement. 6. Suppose next month Dance Creations expects to produce 1,640 hula skirts and sell 1,740 . Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? Complete this question by entering your answers in the tabs below. Complete a contribution margin income statement for the last month. Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume rarties, and other functions. During its first year of business, the company incurred the following costs: Pance Creations charges $33 for each skirt that it sells. During the first month of operation, it made 1,640 skirts and sold 1,520. equired: - Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. .. Complete a contribution margin income statement for the last month. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. Complete a full absorption costing income statement. Suppose next month Dance Creations expects to produce 1,640 hula skirts and sell 1,740 . Without recreating the new income tatements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? Complete this question by entering your answers in the tabs below. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. Note: Round your intermediate calculations and final answer to 2 decimal places. Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Dance Creations charges $33 for each skirt that it sells. During the first month of operation, it made 1,640 skirts and sold 1,520 . Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a contribution margin income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4. Complete a full absorption costing income statement. 6. Suppose next month Dance Creations expects to produce 1,640 hula skirts and sell 1,740 . Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? Complete this question by entering your answers in the tabs below. Complete a full absorption costing income statement. Note: Round your intermediate calculations to 2 decimal places. Round your final answer to nearest whole dollar. Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Dance Creations charges $33 for each skirt that it sells. During the first month of operation, it made 1,640 skirts and sold 1,520. Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a contribution margin income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4. Complete a full absorption costing income statement. 6. Suppose next month Dance Creations expects to produce 1,640 hula skirts and sell 1,740. Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? Complete this question by entering your answers in the tabs below. Suppose next month Dance Creations expects to produce 1,640 hula skirts and sell 1,740 . Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? Note: Round your final answer to nearest whole dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Art and Science of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones

14th Canadian edition

134613112, 134835018, 9780134885254 , 978-0134613116

More Books

Students also viewed these Accounting questions