Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show workplz. I'm having a hard time understanding Chapter 6 Homework 9 2 Print During Heaton Company's rst two years of operations, it reported

image text in transcribed

please show workplz. I'm having a hard time understanding

image text in transcribedimage text in transcribed
Chapter 6 Homework 9 2 Print During Heaton Company's rst two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $61 per unit) $ 1,229,999 $ 1,339,999 Cost of goods sold (@ $35 per unit) 763,866 1,658,666 Gross margin 526,866 786,666 Selling and administrative expenses' 311,366 341,666 Net operating income $ \\299,999\\ $ 439,999 | * $3 per unit variable; $251,000 xed each year. The company's $35 unit product cost is computed as follows: Direct materials 5 8 Direct labor 16 Variable manufacturing overhead 3 Fixed manufacturing overhead ($356,666 + 25,666 units) 14- Absorption costing unit product cost 5 35 Forty percent of fixed manufacturing overhead consists ofwages and salaries; the remainder consists of depreciation charges on production equipment and buildings. 0 Type here to search Help Save 8: Exit Submit Check my work A Chapter Homework 9 Saved Help Save 8: Exit Submit Check my work A Direct materials $ 3 Direct labor 19 Variable manufacturing overhead 3 Fixed manufacturing overhead ($358,868 + 25,666 units) 14- Absorption costing unit product cost $ 35 Forty percent of leEd manufacturing overhead consists ofwages and salaries; the remainder consists of depreciation charges on pm. production equipment and buildings, Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 25,688 25,088 Units sold 29,393 39,939 Required: 1, Using variable costing, what is the unit product cost for both years? 2. What is the variabie costing net operating income in Year1 and in Year 2? 3. Reconcile the absorption costing and the variabie costing net operating income figures for each year. Complete this question by entering your answers in the tabs below. 0 Type here to search

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

17th Edition

1260247783, 978-1260247787

More Books

Students also viewed these Accounting questions

Question

4. Pupils often misbehave in order to make the teacher look bad.

Answered: 1 week ago

Question

5. It is the needs of the individual that are important.

Answered: 1 week ago