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The EG Company produces and sells one product. The following data refer to the year just completed:
Assume that direct labor is a variable cost.
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.d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.
What steps can be taken to loosen the constraint in coating and sharpening and Which product should be emphasized if the constraint in coating and sharpening cannot be loosened?
AB Company specialises in electronic products. Division A makes integrated circuits and sells 90% of its output to outside companies. This division is operating well below capacity.
The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.
Calculate price and efficiency variances for all of the above and briefly explain what they mean and why the variances may have occurred.
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Determine the breakeven point in units and dollars. Also, determine the number of units and dollars that need to be sold to make a target profit of $5,000 a month and identify what types of trends you should be aware of in the industry and who the..
Use the following format to classify each cost as a product cost or a general, selling, and administrative (G,S,A) cost. Also indicate whether the cost would be recorded as an asset or an expense. The first is shown as an example.
measurement in the context of accountingthe diverse measurement methods developed for different kinds of assets propose
How do you suppose the owner came up with $400 as the loss for the next year if the new pizza oven were purchased? Explain. Criticize the owner's analysis and decision.
What kind of business decision might cause you to increase your fixed costs? Define variable costs. Will purchasing a new manufacturing facility increase fixed costs or variable costs?
Calculate the net present value, go to the Function Wizard. The function you are going to use is in the function category of FINANCIAL and is NPV and calculating Internal Rate of Return
Calculate the expected profit and rate of return on investment for each division and for the company as a whole in the coming year, if Division B purchases its motors from Division A, and sells its entire output to retailers.
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