Variable expenses per unit: Direct Material $40 Direct Labour $32 Variable Manufacturing Overhead $18 Fixed expenses: Fixed Manufacturing Overhead $190,000 Fixed Selling Costs $115,000 Fixed Administrative Costs $135,000
Q: LoneStar Co. is a manufacturing company that produces only one product, cowboy boots, has provided…
A: Manufacturing Overheads: Manufacturing overheads constitutes all the costs of indirect nature, that…
Q: Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The business…
A: Definition: Contribution Margin: Contribution Margin refers to the margin of profit expected by the…
Q: NUBD Corporation has the following standard costs associated with the manufacture and sale of one of…
A: Working note: Computation of cost of goods sold:
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: We are authorized to answer three sub parts at a time, since you have not mentioned which part you…
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…
Q: Bairstow Company manufactures and sells a single product. The following costs were incurred during…
A: Introduction: Variable costing is a concept used in management and cost accounting that excludes…
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: The profit calculated by deducting the operating expenses from the gross profit in a business is…
Q: Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and…
A: variable costing and Absorption costing are two methods of costing. Under variable costing, all…
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: Hey, since there are multiple requirements posted, we will answer the first three requirements.…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: The break-even point is the level of sales where the fixed cost is completely recovered and yields…
Q: Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The business…
A: Let the number of units sold be X Sales- Direct material- Direct Labor Cost - Variable Manufacturing…
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: a) Computation of new selling price per unit for 2019 Particulars Amount $ Desired…
Q: Sims Company, a manufacturer of tablet computers, bogan opcrations on January 1, 2019. Its cost and…
A: SIMS COMPANY Absorption Costing Income Statement Sales (80,000 units X $ 350 per unit) $…
Q: You have just begun your summer internship at Valencia Manufacturing. To expand sales, the business…
A: Break-even point is the point wherein revenues equals expenses or contribution equals fixed costs.…
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…
Q: Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and…
A: Absorption costing is used to ascertain the cost per unit. In absorption costing, only production…
Q: LoneStar Co. is a manufacturing company that produces only one product, cowboy boots, has provided…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: Using the equation method, calculate the number of units sold in 2018. Given the sales units…
A:
Q: Greek Manufacturing Company produces and sells a line of product that are sold usually all year…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Greek Manufacturing Company produces and sells a line of product that are sold usually all year…
A: GIVEN Greek Manufacturing Company produces and sells a line of product that are sold usually all…
Q: Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The business…
A: Introduction: Break even sales is the point at which there is no profit and no loss and only fixed…
Q: The company has a maximum production capacity of 100,000 units per year. Operating at normal…
A: In this question, We will calculate the normal capacity of the business.
Q: Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The business…
A: Answer A) The number of units sold in 2018 Under Equation Method: Selling Price per Unit × Units…
Q: Selling price per unit……………………………………… $50.00 Production Costs: Direct Materials…
A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…
Q: (f) Assume that as a result of reorganizing the production process, Valencia Manufacturing Company…
A:
Q: Greek Manufacturing Company produces and sells a line of product that are sold usually all year…
A: Net income is the income which is calculated after deduction of costs, allowances and taxes. This is…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A:
Q: Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The business…
A: Answer: First of all Calculate the Units sold in 2018: Total Variable Cost Per Unit = Direct…
Q: Bairstow Company manufactures and sells a single product. The following costs were incurred during…
A: According to the given question, we are required to show and prepare the income statement and…
Q: (a) Using the equation method, calculate the number of units sold in 2018. (b) Given the sales…
A:
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: Break even point: Break even point is the point where company is at zero profit. Break even point is…
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: Break-even point is the point wherein revenues equals expenses or contribution equals fixed costs.…
Q: a) Using the equation method, calculate the number of units sold in 2018? b) How would your error…
A: Break-even Analysis: It refers to an analysis of the level of operations at which a company…
Q: Samantha Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: a. PX = VX + FC + Profit Where, P = Price per unit X = Number of units sold V = Variable cost per…
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earnedOperating…
A:
Q: The following costs result from the production and sale of 12,000 CD sets manufactured by Gilmore…
A: 1.
Q: (a) You have just begun your summer internship at Valencia Manufacturing. To expand sales, the…
A:
Q: Required: a.Assume that as a result of reorganizing the production process, Valencia Manufacturing…
A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…
Q: Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The business…
A: a) Calculate the number of units sold in 2018, using the equation method. Working note: Calculate…
Q: Samantha Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: Break-even point is the point wherein revenues equals expenses or contribution equals fixed costs.…
Q: Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and…
A: An income statement is a statement that is a part of financial statements which is prepared to…
Q: Overtime produces and sells a mantel clock for $200 per unit. In 2020, 41,000 clocks were produced…
A: The cost per unit under absorption costing is calculated by adding the direct material, direct…
Q: Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The business…
A: (1) Calculation of number of units sold in 2018 is as follows:s Number of Units Sold=Fixed…
Q: Time Again, LLC produces and sells a mantel clock for $100 per unit. In 2017, 42,125 clocks were…
A: variable costing means cost which changes based on the rate of inventory it means fixed cannot be…
Q: Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The business…
A: (a) Calculation of number of units sold in 2018 is as follows:
Q: LoneStar Co. is a manufacturing company that produces only one product, cowboy boots, has provided…
A: Variable cost and absorption costing: Companies utilize two prominent accounting approaches to…
Q: Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and…
A: Req-1 Sims Company Variable costing Income Statement Sales (75000 units * $360)…
Q: Can somebody check my work on the variable costing income statement in the screenshot attached?…
A: Income statement based on variable costing is prepared using MS Excel:
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating…
A: The Numerical has covered the concept of Break-Even Point and Cost Volum Profit analysis. Break-Even…
Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned
Operating Income of $220,000 in 2018, when selling price per unit was $200, and the president of Valencia
is under pressure to increase operating income in 2019. Data for variable cost per unit and total fixed costs
were as follows:
Variable expenses per unit: Direct Material $40
Direct Labour $32
Variable Manufacturing
Fixed expenses: Fixed Manufacturing Overhead $190,000
Fixed Selling Costs $115,000
Fixed Administrative Costs $135,000
Required:
(e) The management of Valencia Manufacturing Company is desirous of increasing operating income by 20% in 2019. They expect per unit data and total fixed costs to remain the same in 2018. Determine the number of units that must be sold to earn this target operating profit. Is this a realistic
goal?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.Wellington, Inc., reports the following contribution margin income statement for the month of May. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $10 but will increase fixed costs by 20%. Prepare a projected contribution margin income statement for Wellington, Inc., assuming it purchases the new equipment. Assume sales level remains unchanged.
- The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $2 but will increase fixed costs by 15%. Prepare a projected contribution margin income statement for Markham Farm assuming it purchases the new equipment. Assume sales level remains unchanged.Valencia Manufacturing Company manufactures and sells musical gadgets. The business earnedOperating Income of $220,000 in 2018, when selling price per unit was $200, and the president of Valenciais under pressure to increase operating income in 2019. Data for variable cost per unit and total fixed costswere as follows:Variable expenses per unit: Direct Material $40Direct Labour $32Variable Manufacturing Overhead $18Fixed expenses: Fixed Manufacturing Overhead $190,000Fixed Selling Costs $115,000Fixed Administrative Costs $135,000Required:(a) Using the equation method, calculate the number of units sold in 2018. (b) Given the sales units calculated in Part (a), prepare a contribution margin income statement for theyear ended December 31, 2018, detailing the composition of total fixed costs and clearly showingcontribution and net income. (c) Calculate Valencia’s break-even point in units and in sales dollars. (d) Calculate the margin of safety in units and in sales dollars.
- Valencia Manufacturing Company manufactures and sells musical gadgets. The business earnedOperating Income of $220,000 in 2018, when selling price per unit was $200, and the president of Valenciais under pressure to increase operating income in 2019. Data for variable cost per unit and total fixed costswere as follows:Variable expenses per unit: Direct Material $40Direct Labour $32Variable Manufacturing Overhead $18Fixed expenses: Fixed Manufacturing Overhead $190,000Fixed Selling Costs $115,000Fixed Administrative Costs $135,000Required:(f) Assume that as a result of reorganizing the production process, Valencia Manufacturing Companywas able to reduce direct material cost per unit by $5 due to a change in the quality of raw materialused in the production process but the expected sales of 6,000 units would decrease by 5% andtotal fixed costs are expected to increase by $94,000. What must the new selling price per unit be ifthe company wishes to meet the target operating profit for…Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating Income of $220,000 in 2018, when selling price per unit was $200, and the president of Valencia is under pressure to increase operating income in 2019. Data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $40 $32 $18 Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead Fixed Selling Costs Fixed Administrative Costs Fixed expenses: $190,000 $115,000 $135,000 Required: (a) Using the equation method, calculate the number of units sold in 2018. (b) Given the sales units calculated in Part (a), prepare a contribution margin income statement for the year ended December 31, 2018, detailing the composition of total fixed costs and clearly showing contribution and net income. (c) Calculate Valencia's break-even point in units and in sales dollars. (d) Calculate the margin of safety in units and in sales dollars.…Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating Income of $220,000 in 2018, when selling price per unit was $200, and the president of Valencia is under pressure to increase operating income in 2019. Data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $40 Direct Labour $32 Variable Manufacturing Overhead $18 Fixed expenses: Fixed Manufacturing Overhead Fixed Selling Costs Fixed Administrative Costs $190,000 $115,000 $135,000 Required: (a) Using the equation method, calculate the number of units sold in 2018. (b) Given the sales units calculated in Part (a), prepare a contribution margin income statement for the year ended December 31, 2018, detailing the composition of total fixed costs and clearly showing contribution and net income. (c) Calculate Valencia's break-even point in units and in sales dollars.
- Samantha Manufacturing Company manufactures and sells musical gadgets. The business earned Operating Income of $220,000 in 2018, when selling price per unit was $200, and the president of Samantha is under pressure to increase operating income in 2019. Data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $40 Direct Labour $32 Variable Manufacturing Overhead $18 Fixed expenses: Fixed Manufacturing Overhead $190,000 Fixed Selling Costs $115,000 Fixed Administrative Costs $135,000 Required: (d) Calculate the margin of safety in units and in sales dollars. (e) The management of Samantha Manufacturing Company is desirous of increasing operating income by 20% in 2019. They expect per unit data and total fixed costs to remain the same in 2018. Determine the number of units that must be sold to…Samantha Manufacturing Company manufactures and sells musical gadgets. The business earned Operating Income of $220,000 in 2018, when selling price per unit was $200, and the president of Samantha is under pressure to increase operating income in 2019. Data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $40 Direct Labour $32 Variable Manufacturing Overhead $18 Fixed expenses: Fixed Manufacturing Overhead $190,000 Fixed Selling Costs $115,000 Fixed Administrative Costs $135,000 (g) You have just begun your summer internship at Samantha Manufacturing. To expand sales, the business is considering paying a commission to its sales team. You have been asked to compute 1) the new break-even sales figure, and 2) the operating profit if sales increase by 10% under the new sales commission plan.…Samantha Manufacturing Company manufactures and sells musical gadgets. The business earned Operating Income of $220,000 in 2018, when selling price per unit was $200, and the president of Samantha is under pressure to increase operating income in 2019. Data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $40 Direct Labour $32 Variable Manufacturing Overhead $18 Fixed expenses: Fixed Manufacturing Overhead $190,000 Fixed Selling Costs $115,000 Fixed Administrative Costs $135,000 Required: (a) Using the equation method, calculate the number of units sold in 2018. (b) Given the sales units calculated in Part (a), prepare a contribution margin income statement for the year ended December 31, 2018, detailing the composition of total fixed costs and clearly showing contribution and net income.…