Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

need ASAP pls Question 17 (20 points) The Maxi Company uses an actual costing system. Denominator volume for the years 2019 and 2020 was 400,000

need ASAP pls
image text in transcribed
Question 17 (20 points) The Maxi Company uses an actual costing system. Denominator volume for the years 2019 and 2020 was 400,000 units. The fixed overhead spending was essentially unchanged from 2019. The following are actual data for the year 2020: Sales 470,000 units Opening inventory 100,000 units Ending inventory 40,000 units Selling price $60.00 Variable costs - Manufacturing $15.00 Selling and administrative $6.00 Fixed costs - Manufacturing $8,000,000 Selling and administrative $3,000,000 Answer the following questions based on this above data for the year ended 2020 Enter your answer without commas or dollar signs rounded to the nearest dollar e.g. for $1,567,000.45 input 1567000. If no dollar value is appliable, then enter n/a. 1 under variable costing the cost of goods sold is 2 under absorption costing the cost of goods sold is 3 What would the contribution margin be under absorption costing? 4 What would the contribution margin be under variable costing 5 What would the gross margin be under absorption costing 6 What would the contribution margin be under variable costing 7 What is the total period expenses under absorption costing 8 What is the total period expenses under direct costing 9 What is the operating income under absorption costing 10 Under direct costing, EBIT would be: 11 In this case what operating income would be the highest. Enter either absorption or variable 12 By what amount would direct and absorption operating differ

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Accounting What the Numbers Mean

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

9th Edition

978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062

Students also viewed these Accounting questions