12 Richmond, Inc. uses absorption costing for external reporting and variable costing for its internal analysis. For its first year of operations, the company showed the following: Production $ Selling/admin 30,000 45,000 Total Variable costs 272,000 $ Total Fixed costs $ 180,000 $ Units produced 30,000 units If the company's reported net operating income (NOI) under absorption costing was $21,000 higher than its internal NOI using variable costing, how many units were sold during the period? 26,500 units 27,200 units A. В. С. 32,800 units 33,500 units None of the above D. Е.
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- APPLICATION • Alta Production, Inc., is using the account analyis approach to identify the beharior of production costs for a month in which it prodaced 350 units. The production manager was asked to review these costs and provide her best guess as to how they should be catevorized. She resoonded with the followine information: Tetal fe) S270,000 134,000 101.000 $507.000 Variable (e) S270,000 130,000 100,000 3500.000 Fixed Materials used in production Labor used in production Production facility costs Total production cost 4.000 3.000 37.000 • Alta Production, Inc., reported the following production costs for the 12 months January through December. Reporting Period (Month) Total Production Costs Level of Activity (Units Produced) January $460,000 300 February 300,000 220 March 480,000 330 Аpril 550,000 390 570,000 310,000 May 410 June 240 July 440,000 290 August 455,000 320 September 530,000 380 250,000 150 October November 700,000 450 December 490,000 350Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. UnitsProduced TotalLumberCost TotalUtilitiesCost Total MachineDepreciationCost 7,000 shelves $84,000 $9,050 $140,000 14,000 shelves 168,000 17,100 140,000 28,000 shelves 336,000 33,200 140,000 35,000 shelves 420,000 41,250 140,000 For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places. Cost Fixed Portionof Cost Variable Portionof Cost (per Unit) Lumber Utilities DepreciationMetters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Variable costs (per unit) ($) Process type Annualized fixed cost labor material energy Of plant & equip. Intermittent $1,000,000 24 26 20 Mass customization $1,190,000 30 18 12 Repetitive $1,385,000 28 15 11 Continuous $1,660,000 25 15 10 Determine the most economical…
- Estimate the unit selling price of an item for which the following data is available. Labor 10 hours at $48/hr Overhead 170% of labor Material Costs $64 each Packing Costs 20% of labor Subcontract Cost $13 each 25% of selling price 50% of selling price Sales Commission Profit $5876.00 each $6096.00 each $367.25 each $2612.00 eachDetermine breakeven annual revenue: please draw CDFBest Ink Printing Co. received an order to print a minimum of 50,000 tickets for a concert. They have three printing machines available to meet the order they received. The set-up cost of these machines and the unit cost/ticket printed using each machine along with their maximum production are provided in the table below: Machine A B 976400 C Cost per unit $18 $21 $24 Maximum Production 30,000 25,000 30,000 Formulate an all-integer linear programming model to find the required number of tickets produced by each machine in order to minimize the production cost. What is the optimal solution for the number of tickets produced by machine B?
- 1. A company in the process industry produces a chemical compound that is sold to manufacturers for use in the production of certain plastic products. The plant that produces the compound employ approximately 300 people. (12 pts) Develop a list of six different cost elements that would be fixed and a similar list of six cost elements that would be variable. FIXED COSTS VARIABLES COSTS 1. 2. 1. 3. 3. 4. 4. 5. 5. 6. 6. 2/345n6Q.(i) . Selling Price :Rs. 12 Per UnitVariable Cost : 2/3 of SPFixed Cost :Rs. 40,000You are required to calculate:(a) Sales to earn profit of Rs. 8000.(b) Also show the BEPs in Breakeven chart. Q.(ii). Use the following information and explain that how the reduction in selling pricewould affect the MOS?Particulars Rs.Selling price per unit 40Material per unit 12Labour per unit. 8Variable Overheads per unit 4Total Fixed cost is Rs. 8, 000. Full capacity of the Plant is 5, 000 units.Reduced selling price is Rs. 32 per unit.Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Miles Mowed Labor Month and Cleaned Costs April 240 S6,800 May 305 7,680 June 325 8,310 July 275 7,200 August 220 6,550 September 200 5,760 Оctober 75 4,960 Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs - $ 3,955 v + $ 13.4 v X Plot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost-estimating equation for monthly labor costs. Monthly labor costs - $ 9,181 x + $ 13.4 x x Adjust the equation developed in…
- please discuss this statement “Thw technical pattern that statistically significant could be economically insignificant.”If accounting profits are $6000 and explicit cost are $2200 Calculate total revenueA shoe company manufactures and sells a pair of shoes with the folowing cost and revenue data: Selling price Per Unit (AED) 75 Variable cost Per Unit (AED) 20 Total fixed expenses per month are as follows: Expenses types Advertising AED 388,348 Rent 90,000 Heating 80,000 a. How many units would the company have to sell to have a profit of AED 150,000?