9 21 Variable and Absorption Costing Explaining Operating Income Differences

Actual data relating to April and May 2017 are as follows. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing.

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Absorption costing which is required by generally accepted accounting principles GAAP includes all variable and fixed production costs in the calculation of product cost.

. 9-21 Variable and absorption costing explaining operating-income differences. The difference between absorption and variable costing is due solely to moving fixed manufacturing costs into inventories as inventories increase as in April and out of inventories as they decrease as in. The selling price per unit is 3500.

Manufacturing cost per unit produced 10000. Variable costing and absorption costing the All-Fixed Company R. Actual data relating to January February and March 2017 are as follows.

Beginning Inventory 0 150 Proudtion 500 400 Sales 350 520 Variable Costs. Manufacturing costs are included as and when travel casts. Marple adapted It Assume that the performance of the top manager of the company is evaluated and rewarded largely on the basis of reported.

Variable and absorption costing explaining operating-income differences. 9-21 Variable and absorption costing explaining operating-income differences. 100 0 35000 35000 February.

Give one motivation for EntertainMe to adopt throughput costing. 9-21 Absorption and variable costing. Variable and absorption costing explaining operating income differences.

Nascar Motors assembles and sells motor vehicles and uses standard costing. The selling price per vehicle is 24000. Mohammed Last modified by.

9-21 Variable and absorption costing explaining operating-income differences. CMA Osawa Inc planned and. Nascar Motors assembles and sells motor vehicles and uses standard costing.

The difference between variable costing and absorption costing is that the fixed manufacturing expenses are expensed in the period in variable costing and are taken into inventory in absorption costing. Up to 24 cash back Absorption-costing operating income Variable-costing operating income Fixed manufacturing costs in ending inventory Fixed manufacturing costs in beginning inventory April. 9-1 8 Variable and absorption costing explaining operating-income differences.

The selling price per vehicle is 24000. The budgeted level of production used to calculate the. 1899375 1899375 350.

100 0 0. 600000 600000 May. Operating income using variable costing is about 9 percent higher than operating income calculated using absorption costing.

Variable costs per unit direct materials-8. Operating income using variable costing is about 9 higher than operating income Revenues 7598800 Operating income 2937320 Pre-tax profit margin 387 Revenues 598 800 Operating income 2694920 Pre-tax profit margin 355 pg g g g p g calculated using absorption costing. Actual data relating to April and May 2017 are as follows.

Actual data relating to January February and March 2017 are as follows. Nascar Motors as- sembles and sells motor vehicles and uses standard costing. Absorption-costingoperating income Variable costingoperating income Fixed manufacturingcosts inending inventory Fixed manufacturingcosts inbeginning inventory January.

The selling price per vehicle is 24000. 100 350. Manufactures and sells 50-inch television sets and uses standard costing.

The budgeted level of production used to calculate the budgeted fixed manufacturing cost. Actual data relating to April and April May Units Data. Variable costing operating income Absorption costing operating income 4075000 3825000 250 The factors the CFO should consider include a Effect on managerial behavior.

7 rows 9-21 Variable and absorption costing explaining operating-income differences. So under absorption casting both variable and picks. Actual data relating to April and May 2017 are as follows.

View full document. Nascar Motors assembles and sells motor vehicles and uses standard costing. During the period MALASHI manufactured 22000 units of AA.

Explain the difference in operating income for January February and March under variable costing and abs a Variable Costing January Feburary Revenues 4455000 4620000 In April throughput costing has the lowest operating income whereas in May throughput costing has costing puts greater emphasis on sales as the source of operating income than does either. 9-23 Variable and absorption costing explaining operating-income differences. The selling price per vehicle is 24000.

Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows. Actual data relating to January February and March 2014 are as follows.

Uh So both ah both ah cleared even both were a able and uh fixed. The following costs were available. Exercise 9-21 9-21 Variable and absorption costing explaining operating-income differences.

Actual data relating to April and May 2008 areAprilMayUnit dataBeginning. Actual data relating to April and May 2017 are as follows. EntertainMe Corporation manufactures and sells 50-inch television sets and uses standard costing.

1797500 1762500 350. Variable costing which is used to supplement managerial decision making includes only variable production costs. Nascar Motors assembles and sells motor vehicles and uses standard costing.

MyAccountingLab HomeInsert Page Layout F Formulas Data R Review ril Ma 2 Unit data 3Beginning invent 4 Production 5 Sales 6. Costing explaining operating income differences Author. Nascar Motors assembles and sells motor vehicles and uses standard costing.

9-21 Variable and absorption costing explaining operating-income differences. 9-21 Variable and absorption costing explaining operating-income differences. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit.

Crystal Clear Corporation manufactures and sells 50-inch television sets and uses standard costing. 480000 120000 600000 480000 480000 The difference between absorption and variable costing is due solely. And uh under variable costing only variable manufacturing costs are included as inventory uh in winter ah inventory as well are in one dribble casts.

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