Unit 4 Chapter 7 Connect Homework Assignment

Unit 4 Chapter 7 Connect Homework Assignment

Homework must be submitted through the Connect Accounting system.Click onthe link above to access the templates for your homework for this unit.Complete the Chapter 7 Foundational 15.

Required information [The foiiowingr information applies to the questions displayed below] Diego Company manufactures one product that is sold for 5T5 per unit in two geographic regionsthe East and West regions. The following information pertains to the company's rst year of operations in which it produced 58,000 units and sold 54,000 units. 1liariable costs per unit: Manufacturing: Direct materials 5 23 Direct labor 5 15 1Iiariable manufacturing overhead 5 3 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $1,166,666 Fixed selling and administrative expense 5 646,666 ' The company sold 40,000 units in the East region and 14,000 units in the WES! region. It determined that $320,000 of its fixed selling and administrative expense is traceable to the West region, $2?0,000 is traceable to the East region, and the remaining $50,000 is a common xed expense. The company will continue to incur the total amount of its xed manufacturing overhead costs as long as it continues to produce any amount of its only product. Er. IWhat is the company's net operating income {loss} under absorption costing? :l:| [The following Information applies to the questions displayed below] Diego Company manufactures one product that is sold for $76 per unit In two geographic regions-the East and West regions. The following Information pertains to the company's first year of operations In which it produced 58,000 units and sold 54,000 units. Variable costs per unit: Manufacturing: Direct materials 23 Direct labor 15 Variable manufacturing overhead 3 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $1, 160, 089 Fixed selling and administrative expense 640,080 The company sold 40,000 units In the East region and 14,000 units In the West region. It determined that $320,000 of Its fixed selling and administrative expense is traceable to the West region, $270,000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to Incur the total amount of Its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 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 Operating Income (Losses) Variable costing net operating income (loss) Absorption costing net operating income (loss)8 Required Information Part 8 of 15 [The following Information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $76 per unit in two geographic regions-the East and West regions. The following Information pertains to the company's first year of operations In which it produced 58,000 units and 10 points sold 54,000 units. Variable costs per unit: Manufacturing: Print Direct materials 23 Direct labor 15 Variable manufacturing overhead 3 Variable selling and administrative 3 Fixed costs per year: Fixed manufacturing overhead $1, 160, 080 Fixed selling and administrative expense $ 640,080 The company sold 40,000 units In the East region and 14,000 units In the West region. It determined that $320,000 of Its fixed selling and administrative expense is traceable to the West region, $270,000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to Incur the total amount of Its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. a. What is the company's break-even point In unit sales? Break even point units9 Required Information Part 9 of 15 [The following Information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $76 per unit in two geographic regions-the East and West 10 regions. The following Information pertains to the company's first year of operations In which it produced 58,000 units and points sold 54,000 units. Variable costs per unit: Manufacturing: Print Direct materials 23 Direct labor 15 14 14 14 14 Variable manufacturing overhead 3 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $1, 160,090 Fixed selling and administrative expense $ 640,080 The company sold 40,000 units In the East region and 14,000 units In the West region. It determined that $320,000 of Its fixed selling and administrative expense is traceable to the West region, $270,000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to Incur the total amount of Its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 9. If the sales volumes In the East and West regions had been reversed, what would be the company's overall break-even point In unit sales? Break even point units10 Required Information Part 10 of 15 [The following Information applies to the questions displayed below.] Diego Company manufactures one product that Is sold for $76 per unit In two geographic regions-the East and West 10 regions. The following Information pertains to the company's first year of operations In which it produced 58,000 units and points sold 54,000 units. Variable costs per unit: Manufacturing: Print Direct materials 23 Direct labor 15 14 14 14 14 Variable manufacturing overhead 3 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $1, 160,909 Fixed selling and administrative expense $ 640, 080 The company sold 40,000 units In the East region and 14,000 units In the West region. It determined that $320,000 of Its fixed selling and administrative expense is traceable to the West region, $270,000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to Incur the total amount of Its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 10. What would have been the company's variable costing net operating Income (loss) If it had produced and sold 54,000 units? You do not need to perform any calculations to answer this question.11 Required Information Part 11 of 15 [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $76 per unit in two geographic regions-the East and West 10 regions. The following Information pertains to the company's first year of operations In which it produced 58,000 units and points sold 54,000 units. variable costs per unit: Manufacturing: Print Direct materials 23 Direct labor 15 14 14 14 14 Variable manufacturing overhead 3 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $1, 160, 080 Fixed selling and administrative expense $ 640,090 The company sold 40,000 units In the East region and 14,000 units In the West region. It determined that $320,000 of Its fixed selling and administrative expense is traceable to the West region, $270,000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to Incur the total amount of Its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 11. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 54,000 units? You do not need to perform any calculations to answer this question.13 Required Information Part 13 of 15 [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $76 per unit In two geographic regions-the East and West regions. The following Information pertains to the company's first year of operations In which it produced 58,000 units and 10 sold 54,000 units. points Variable costs per unit: Manufacturing: Direct materials Print 23 Direct labor 15 to to to to Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $1, 160,606 Fixed selling and administrative expense $ 640,090 The company sold 40,000 units In the East region and 14,000 units In the West region. It determined that $320.000 of its fixed selling and administrative expense is traceable to the West region, $270.000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to Incur the total amount of its fixed manufacturing overhead costs as long as It continues to produce any amount of Its only product. 13. Prepare a contribution format segmented income statement that Includes a Total column and columns for the East and West regions. Income Statement Total Company East West14 Required Information Part 14 of 15 [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $76 per unit In two geographic regions-the East and West 10 regions. The following Information pertains to the company's first year of operations In which It produced 58,000 units and sold 54,000 units. points Variable costs per unit: Manufacturing : Print Direct materials 23 Direct labor 15 to to to to Variable manufacturing overhead 3 Variable selling and administrative 3 Fixed costs per year: Fixed manufacturing overhead $1, 160,060 Fixed selling and administrative expense $ 640,090 The company sold 40,000 units In the East region and 14,000 units In the West region. It determined that $320.000 of its fixed selling and administrative expense is traceable to the West region, $270.000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to Incur the total amount of Its fixed manufacturing overhead costs as long as It continues to produce any amount of Its only product. 14. Diego is considering eliminating the West region because an Internally generated report suggests the region's total gross margin In the first year of operations was $110,000 less than Its traceable fixed selling and administrative expenses. Diego believes that if it drops the West region, the East region's sales will grow by 4% In Year 2. Using the contribution approach for analyzing segment profitability and assuming all else remains constant In Year 2, what would be the profit Impact of dropping the West region In Year 2? Profit will by15 Required Information Part 15 of 15 [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $76 per unit In two geographic regions-the East and West regions. The following Information pertains to the company's first year of operations In which It produced 58,000 units and points sold 54,000 units. Variable costs per unit: Manufacturing : Print Direct materials 23 Direct labor 15 to to to to Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $1, 160,606 Fixed selling and administrative expense 640,906 The company sold 40,000 units In the East region and 14,000 units In the West region. It determined that $320,000 of its fixed selling and administrative expense is traceable to the West region, $270.000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to Incur the total amount of its fixed manufacturing overhead costs as long as It continues to produce any amount of Its only product. 15. Assume the West region Invests $48,000 in a new advertising campaign In Year 2 that Increases Its unit sales by 20%. If all else remains constant, what would be the profit impact of pursuing the advertising campaign? Profit will by