Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Diego Company manufactures one product that is sold for $78 per unit in two geographic regions--the East and West regions. The following information pertains to

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Diego Company manufactures one product that is sold for $78 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 49,000 units and sold 44,000 units Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense 28 14 4 6 $ $ 686,000 $ 510,000 The company sold 32,000 units in the East region and 12.000 units in the West region. It determined that $230,000 of its fixed selling and administrative expense is traceable to the West region, $180,000 is traceable to the East region, and the remaining $100,000 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. 6. What is the company's net operating income (loss) under absorption costing? Diego Company manufactures one product that is sold for $78 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 49,000 units and sold 44,000 units Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per years Hxed manufacturing overhead Fixed selling and administrative expense $ $ $ S 28 14 4 6 $ 686,000 3.510,000 The company sold 32.000 units in the East region and 12,000 units in the West region. It determined that $230,000 of its fixed seling and administrative expense is traceable to the West region $180,000 is traceable to the East region and the remaining $100,000 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 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes fosse Diego Company manufactures one product that is sold for $78 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 49,000 units and sold 44,000 units 5 5 Variable costs per unit: Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense $ 28 14 4 6 $ 686,000 $ 510,000 The company sold 32,000 units in the East region and 12,000 units in the West region. It determined that $230,000 of its fixed selling and administrative expense is traceable to the West region, $180,000 is traceable to the East region, and the remaining $100,000 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. a. What is the company's break.even point in unit sales? Diego Company manufactures one product that is sold for $78 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 49,000 units and sold 44,000 units Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense 28 14 4 6 $ 686,000 $ 510,000 The company sold 32000 units in the East region and 12.000 units in the West region. It determined that $230,000 of its fixed selling and administrative expense is traceable to the West region, $180,000 is traceable to the East region, and the remaining $100,000 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 9. If the sales volumes in the East and West regions had been reversed what would be the company's overall break even point in unit sales? a. What is the company's break-even point in unit sales? Book rint Break even point units erences b. Is it above or below the actual unit sales? O Below Above Diego Company manufactures one product that is sold for $78 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 49,000 units and sold 44,000 units Variable costs per unit: Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year xed manufacturing overhead Fixed selling and administrative expense $ $ $ $ 28 14 4 6 66.000 5 510,000 The company sold 32.000 units in the East region and 12.000 units in the West region. It determined that $230,000 of its fixed selling and administrative expense is traceable to the West region $180,000 is traceable to the East region, and the remaining $100,000 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 10. What would have been the company's variable costing net operating income (los) it had produced and sold 44,000 units? You do not need to perform any calculations to answer this

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

Modern Auditing

Authors: William C. Boynton, Walter G. Kell, Raymond N. Johnson, Dr William Boynton

7th Edition

047118909X, 978-0471189091

More Books

Students also viewed these Accounting questions

Question

1. Define mass and mediated communication

Answered: 1 week ago