Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 8-24 Difference in Operating Income under Absorption and Variable Costing {LO 8-1, 8-4) Bianca Bicycle Company manufactures mountain bikes with a variable cost of

image text in transcribedimage text in transcribedimage text in transcribed
Exercise 8-24 Difference in Operating Income under Absorption and Variable Costing {LO 8-1, 8-4) Bianca Bicycle Company manufactures mountain bikes with a variable cost of $2,200. The bicycles sell for $2,950 each. Budgeted fixed manufacturing overhead for the most recent year was $12,200,000. Planned and actual production for the year were the same. Required: State whether operating income is higher under variable or absorption costing and the amount oi the difference in reported operating income under the two methods. Treat each condition as an independent case. (Round intermediate calculations to 2 decimal places.) 1. Production 23,200 units Sales 27,400 units 2. Production 13,000 units Sales 13,000 units 3. Production 12,800 units Sales 10,400 units Exercise 8-25 Variable Costing and Cost-Volume-Profit Analysis (LO 8-5) Bianca Bicycle Company manufactures mountain bikes with a variable cost of $220. The bicycles sell for $350 each. Budgeted fixed manufacturing overhead for the most recent year was 152510.000. Planned and actual production forthe year were the same. Required: 2. Calculate Bianca Bicycle Company's break-even point in units. (Round your answer to rhe nearest whole number.) units FIG!!! Exercise 8-26 Absorption versus Variable Costing (LO 8-1) 5 Information taken from Allied Pipe Company's records for the most recent year is as follows: points Direct material used $220, 000 Direct labor 83, 600 eBook Variable manufacturing overhead 43, 500 O References Fixed manufacturing overhead 73,000 Variable selling and administrative costs 38, 200 Fixed selling and administrative costs 22, 500 + Required: 1. Assuming Allied Pipe Company uses absorption costing, compute the inventoriable costs for the year. 2. Compute the year's inventoriable costs using variable costing. Inventoriable costs 1. Absorption costing . Variable costing

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

Hospitals What They Are And How They Work

Authors: Don Griffin, Donald J Griffin

3rd Edition

076372758X, 9780763727581

More Books

Students also viewed these Accounting questions