Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following Information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable cont's per unit: Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costo per year Pixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 Required: 1. What is the unit product cost under variable costing? Unit product cost Required Information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit. Manufacturing Direct materiale Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costa per year Yixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 2. What is the unit product cost under absorption costing? Unit product cost Required Information The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit: Manufacturing Direct materiale Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per years Yixed manufacturing overhead Fixed selling and administrative expenses 9774.000 $346,000 3. What is the company's total contribution margin under variable costing? Total Contribution margin Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per units Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year Pixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 4. What is the company's net operating Income (loss) under variable costing? Required Information The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit: Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per years Tixed manufacturing overhead Fixed selling and administrative expenses $774,000 $146.000 5. What is the company's total gross margin under absorption costing? Total grous margin Required Information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 6. What is the company's net operating income foss) under absorption costing? Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following Information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit: Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year. Fixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)? Difference of Variable Costing and Absorption Costing Net Operatine Incomes Variable costing net operating income osa) Absorption costing net operating income (los) Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following Information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable coste per unit: Yangfacturing: Direct materiale Direct labour Variable manufacturing overhead Variable selling and administrative Tixed costs per years Tixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 1. What is the company's break-even point in unit sales? Break even point units 2. Is it above or below the actual sales volume? Below Above Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable coats per units Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per years Tixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 9. What would have been the company's variable costing net operating income (oss) if it had produced and sold 38,000 units? Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per yeart Pixed manufacturing overhead Tixed selling and administrative expenses $774,000 $346,000 10. What would have been the company's absorption costing net operating Income (loss) If it had produced and sold 38,000 units? Required Information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit. Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year! Fixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 11. If the company produces 5,000 fewer units than it sells in its second year of operations, will absorption costing net operating Income be higher or lower than variable costing net operating income in Year 2? Higher Lower Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per units Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense 305,100 199,500 During the year, the company produced 33,900 units and sold 28,500 units. The selling price of the company's product is $72 per unit. Required: 1. Assume that the company uses absorption costing. a. Compute the unit product cost. Unit product cost Audiophonics Limited manufactures and sells high-quality and durable ear buds for use with personal electronics that are custom moulded to each customer's ear. Cost data for the product follow: Variable costs per unit: Direct materials Direct labour Variable factory overhead Variable selling and administrative Total variable costs per unit Tixed costs per month Fixed wanafacturing overhead Fixed selling and administrative $167,400 130,200 Total fixed cost per month $297.600 The product sells for $54 per unit. Production and sales data for May and June, the first two months of operations, are as follows: Unite Produced 18.600 10.600 May unite sold 16.000 22.400 Income statements prepared by the Accounting Department using absorption costing are presented below: June $ 199,200 $1,209,600 Cost of goods sold Des ventory M otot goods factured 0 781,200 159,600 781,200 Goods available for sale Leaning inventory 701,200 960.00 159.6000 Units Produced 18,600 18,600 May June Units Sold 14,800 22,400 Income statements prepared by the Accounting Department using absorption costing are presented below: May June $ 799,200 $1,209,600 Sales Coat of goods solds Beginning inventory Add cost of goods manufactured 0 781,200 159,600 781,200 Goods available for sale Less ending inventory 940,800 781,200 159,600 Coat of goods sold 621,600 940,800 Gross margin Selling and administrative expenses 177,600 174,600 268,800 197,400 Operating income $ 3,000 $ 71,400 Required: 1. Determine the unit product cost under each of the following methods. a. Absorption costing b. Variable costing 2. Prepare variable costing income statements for May and June using the contribution approach. (Do not leave any empty spaces; Input a 0 wherever it is required.) May June Variable expenses Variable cost of goods sold: Total variable expenses Fixed expenses 0 Total food expenses Operating income (los) S 0 S 0 3. Reconcile the variable costing and absorption costing operating income figures. (Loss amounts should be indicated with a minus sign.) May June Variable costing operating Income (oss) Add: Fed manufacturing overhead cost deferred in inventory under absorption costing Deduct Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing operating income Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following Information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable cont's per unit: Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costo per year Pixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 Required: 1. What is the unit product cost under variable costing? Unit product cost Required Information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit. Manufacturing Direct materiale Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costa per year Yixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 2. What is the unit product cost under absorption costing? Unit product cost Required Information The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit: Manufacturing Direct materiale Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per years Yixed manufacturing overhead Fixed selling and administrative expenses 9774.000 $346,000 3. What is the company's total contribution margin under variable costing? Total Contribution margin Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per units Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year Pixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 4. What is the company's net operating Income (loss) under variable costing? Required Information The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit: Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per years Tixed manufacturing overhead Fixed selling and administrative expenses $774,000 $146.000 5. What is the company's total gross margin under absorption costing? Total grous margin Required Information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 6. What is the company's net operating income foss) under absorption costing? Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following Information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit: Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year. Fixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)? Difference of Variable Costing and Absorption Costing Net Operatine Incomes Variable costing net operating income osa) Absorption costing net operating income (los) Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following Information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable coste per unit: Yangfacturing: Direct materiale Direct labour Variable manufacturing overhead Variable selling and administrative Tixed costs per years Tixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 1. What is the company's break-even point in unit sales? Break even point units 2. Is it above or below the actual sales volume? Below Above Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable coats per units Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per years Tixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 9. What would have been the company's variable costing net operating income (oss) if it had produced and sold 38,000 units? Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per yeart Pixed manufacturing overhead Tixed selling and administrative expenses $774,000 $346,000 10. What would have been the company's absorption costing net operating Income (loss) If it had produced and sold 38,000 units? Required Information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit. Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year! Fixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 11. If the company produces 5,000 fewer units than it sells in its second year of operations, will absorption costing net operating Income be higher or lower than variable costing net operating income in Year 2? Higher Lower Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per units Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense 305,100 199,500 During the year, the company produced 33,900 units and sold 28,500 units. The selling price of the company's product is $72 per unit. Required: 1. Assume that the company uses absorption costing. a. Compute the unit product cost. Unit product cost Audiophonics Limited manufactures and sells high-quality and durable ear buds for use with personal electronics that are custom moulded to each customer's ear. Cost data for the product follow: Variable costs per unit: Direct materials Direct labour Variable factory overhead Variable selling and administrative Total variable costs per unit Tixed costs per month Fixed wanafacturing overhead Fixed selling and administrative $167,400 130,200 Total fixed cost per month $297.600 The product sells for $54 per unit. Production and sales data for May and June, the first two months of operations, are as follows: Unite Produced 18.600 10.600 May unite sold 16.000 22.400 Income statements prepared by the Accounting Department using absorption costing are presented below: June $ 199,200 $1,209,600 Cost of goods sold Des ventory M otot goods factured 0 781,200 159,600 781,200 Goods available for sale Leaning inventory 701,200 960.00 159.6000 Units Produced 18,600 18,600 May June Units Sold 14,800 22,400 Income statements prepared by the Accounting Department using absorption costing are presented below: May June $ 799,200 $1,209,600 Sales Coat of goods solds Beginning inventory Add cost of goods manufactured 0 781,200 159,600 781,200 Goods available for sale Less ending inventory 940,800 781,200 159,600 Coat of goods sold 621,600 940,800 Gross margin Selling and administrative expenses 177,600 174,600 268,800 197,400 Operating income $ 3,000 $ 71,400 Required: 1. Determine the unit product cost under each of the following methods. a. Absorption costing b. Variable costing 2. Prepare variable costing income statements for May and June using the contribution approach. (Do not leave any empty spaces; Input a 0 wherever it is required.) May June Variable expenses Variable cost of goods sold: Total variable expenses Fixed expenses 0 Total food expenses Operating income (los) S 0 S 0 3. Reconcile the variable costing and absorption costing operating income figures. (Loss amounts should be indicated with a minus sign.) May June Variable costing operating Income (oss) Add: Fed manufacturing overhead cost deferred in inventory under absorption costing Deduct Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing operating income