1.The EG Company produces and sells one product. The following data refer to the year just completed:
Beginning Inventory-3,000 Units
Units produced-20,000
units sold-21,000
SALE PRICE PER UNIT-$425
Selling and Admin Expense:
Variable-20
Fixed-312,000
Manufacturing costs:
- DM-210
- DL-75
- VMOH-37
- FMOH-360,000
Required:
A. compute the cost of a single unit of product under both the absorption costing and variable costing approaches.
B. prepare an income statement for the year using absorption costing
C. prepare a contribution format income statement for the year using variable costing.
2. Pressler corporation's activity-based costing system has three activity cost pools- Machining, setting up, and other. The company's overhead cost, which consist of equipment deprecriation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools consumption of resources...
Equipment Depreciation (Total) $27,000
Indirect labor (Total) $7,000
Distribution of resource consumption acros activiity cost pools:
Machining Setting Up Other
Equipment depreciation 0.40 0.30 0.30
Indirect labor 0.20 0.30 0.50
Costing in the maching cost pool are assigned to products based on machine-hours (MHs) and cost in the setting up cost poo are assigned to products based on the number of batches. Costs in the other cost pool are not asigned to products.
MHs Batches
Product S4 8,100 400
Product V6 1,900 1,600
Total 10,000 2,000
Additional data concerning the Company's products appear below:
Product S4 Product V6
Sales (total) $71,400 $57,600
Diret Materials (total) $21,900 $19,900
Direct Labor (total) $33,700 $25,100
Required:
A. Assign overhead costs to activity cost pools using activity-based costing.
B. Calculate activity rates for each activity cost pool using activity-based costing.
C.Determine the amount of overhead cost that would be assigned to each product using activity-based costing.
D.Determine the product margins for each product using activity-based costing.
3. The IT corportation produces and markets two types of electronic calculators: Model 11 and Model 12. The following data were gathered on activities last month:
Model 11 Model 12
Sales in units 4,000 6,000
Selling price per unit 75 125
Variable production cost 22 38
Traceable fixed production 118,000 225,000
Variable selling Exp 6 8
Traceable fixed selling Exp 8,500 11,500
Allocated Division Admin Exp 42,000 70,000
Required: Pepare a segmente income statement in the contribution format for last month.Just need help solving these three problems.