Question 1 A manufacturing company that produces a single product has provided the following data related to its operations during 2022 : The product sells for $50 per unit. The company produced 8,400,000 units and sold 7,000,000 units in 2020. There is no beginning inventory. a) Determine the unit product cost under: i. Absorption costing. ii. Variable costing. b) Prepare an income statement for the year ended 31 December 2022 using absorption costing. c) Prepare a contribution format income statement for the year 31 December 2022 using variable costing. Question 2 Nancy Inc manufactures mobile phones that come with Bluetooth headphone. Each Bluetooth headphone requires the following inputs and costs: Actual reculte for the vear 9027 were as follows. a) Compute the standard variable product cost and actual variable cost per unit. b) For the year 2022 , compute the following variances, indicating whether each is favorable or unfavorable: i. Direct materials price variance ii. Direct materials quantity variance iii. Direct labor rate variance iv. Direct labor efficiency variance v. Variable manufacturing overhead rate variance vi. Variable manufacturing overhead efficiency variance c) Will any of your answer in (b) be different if the company actually used 73,000 pounds of material only. Cost and Management Accounting I Assignment 2 After completion of this Assignment, you should be able to: 1. describe different costing terms in management accounting and problems in designing costing systems; 2. apply different cost concepts for planning, control and decision making; Question 1 A manufacturing company that produces a single product has provided the following data related to its operations during 2022 : The product sells for $50 per unit. The company produced 8,400,000 units and sold 7,000,000 units in 2020. There is no beginning inventory. a) Determine the unit product cost under: i. Absorption costing. ii. Variable costing. b) Prepare an income statement for the year ended 31 December 2022 using absorption costing. c) Prepare a contribution format income statement for the year 31 December 2022 using variable costing. Question 2 Nancy Inc manufactures mobile phones that come with Bluetooth headphone. Each Bluetooth headphone requires the following inputs and costs: Actual results for the vear 2022 were as follows: a) Compute the standard variable product cost and actual variable cost per unit. b) For the year 2022, compute the following variances, indicating whether each is favorable or unfavorable: i. Direct materials price variance ii. Direct materials quantity variance iii. Direct labor rate variance iv. Direct labor efficiency variance v. Variable manufacturing overhead rate variance vi. Variable manufacturing overhead efficiency variance c) Will any of your answer in (b) be different if the company actually used 73,000 pounds of material only
