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I see you are an expert in managerial accounting. I am having trouble with these questions I needed help. thanks 1. Dallas Inc. prepared a
I see you are an expert in managerial accounting. I am having trouble with these questions I needed help. thanks
1. Dallas Inc. prepared a budget last period that called for sales of 15,000 units at a price of $20 each. The costs per unit were estimated to amount to $10 variable and $4 fixed. During the period, actual production and sales were 14,000 units. The actual selling price was $22 per unit. Variable costs were $9 per unit. Fixed costs actually incurred were $65,000. Required: a) Prepare operating statements for the actual output, as well as a static budget and a flexible budget. b) Explain what is indicated when comparing the operating statements. 2. Guy's Grills, Inc. makes a single product - a handmade specialty barbeque grill that sells for $500. Data for last year's operations follow: Units in beginning inventory Units produced Units sold 0 40,000 30,000 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs $ $ 100 150 80 20 350 $1,000,000 500,000 $1,500,000 Required: a) Compute the unit product cost for one barbeque grill for absorption costing, variable costing, and throughput costing. b) Prepare an income statement for the year using the absorption costing approach. c) Prepare an income statement for the year using the variable costing approach. d) Explain the difference in operating income for the absorption and variable costing approachesStep by Step Solution
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