Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what is the amount of the difference between the variable costing and absorption costing net operating income (losses) If the sales volumes in the east


 

what is the amount of the difference between the variable costing and absorption costing net operating income (losses)

If the sales volumes in the east and west regions have been reversed what would be the companys overall break even point in the unit sales

what would have been the company variable costing net operating income loss if it had produced and sold 57000 units

what would have been the company's absorption costing net operating income loss if it had produced and sold 57000 units

Diego company manufacture one product that is sold $78per unit in two geographic regions. the east and west regions, the following information pertains to the companys first year of operation in which it produced 60000 units and sold 57000 units. variable cost per unit manufacturing: direct materials 28, drect labor 12, variable manufacturing overhead 2, variable selling and administrative 3 fixed cost per year: fixed manufacturing overhead 1260000, fixed selling and administrative expense 654000. the company sold 42000 units in the east region and 15000 units in the west region, it determined that 340000 of its fixed sellings and administrtive expense is traceable to the west region, 290000 is traceable to the east region and the remaining 24000 is a common fixed expense, the company will continue to incur the total amount of its fixed manufacturing overhead cost as long as it continues to produce any amount of its only product.

Step by Step Solution

3.31 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

ANSWER To calculate the difference between variable costing and absorption costing net operating income loss Variable Costing Net Operating Income Los... 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

Introduction to Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

7th edition

978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792

More Books

Students also viewed these Accounting questions

Question

=+c) Teachers ranking on their academic class of publications.

Answered: 1 week ago

Question

Why does activity-based costing appeal to some companies?

Answered: 1 week ago