Solution-Develop a variable cost income statement

Develop a variable cost income statement

Assignment Help Cost Accounting

Reference no: EM132633863

Following is a traditional income statement for Mouse Max, a company that manufactures cordless mice for computers.

Revenue $2,500,000

Cost of goods sold $1,200,000

Gross margin $1,280,000

Selling and administration $1,150,000

Operating income $130,000

The income statement reflects sales of 100,000 mice. Direct materials cost $5.00 per mice, direct labor was $1.00 per mice, and sales commissions were $1.50 per mouse. Advertising costs totaled $200,000. All manufacturing overhead costs are fixed.

Problem 1: Develop a variable cost income statement.

Reference no: EM132633863

Questions Cloud

Determine the bep : V.C. per unit is expected to be Rs. 6 while it was Rs. 5 per unit during previous period. F.C. for current period is Rs. 86000. BEP? Assume FIFO

Compute the variable and fixed component of the utility cost : Compute the variable and fixed component of the utility costs of Jenel using least squares analysis and derive the cost formula based on your computations.

Calculate the breakdown of overhead cost as to second shift : Calculate the breakdown of overhead cost as to Second shift premiums. How much of the total labor cost should be charged to direct labor?

Find the effects of inflation on an acquisition program : Determine Financial managers use escalation to consider the effects of inflation on an acquisition program by applying Inflation factors to actual incurred

Develop a variable cost income statement : Develop a variable cost income statement. The income statement reflects sales of 100,000 mice. Direct materials cost $5.00 per mice

Calculate breakeven for bicycleco : CVP- Cost volume and profit analysis, Calculate breakeven for Bicycleco. Is your calculation likely to be in the relevant range? Why or why not?

Write the augmented matrix representing the system : Write the augmented matrix representing the system of linear equations and Solve your assigned problem and include an explanation

What other qualitative research techniques might shed light : Determine the impact of such a report and the anticipated trend - What other qualitative research techniques might shed light on this issue

Calculate the per unit product cost of one computer : Calculate the per unit product cost of one computer under the absorption costing system. Fixed manufacturing overhead expenses: $1,200,000

User Account

All Pages

Develop a variable cost income statement

Reference no: EM132633863

Reference no: EM132633863

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT