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Variable versus absorption costing. Williamson, Inc., manufactures digital voice recorders. During 2013, total costs associated with manufacturing 32,000 of the new EZ 9900 model (introduced this year) were as follows:
Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $275,000Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454,000Variable manufacturing overhead . . . . . . . . . . . . . . . . . . . . . 115,200Fixed manufacturing overhead. . . . . . . . . . . . . . . . . . . . . . . 108,800Required:a. Calculate the cost per recorder under both variable costing and absorption costing.b. If 4,200 of these recorders were in finished goods inventory at the end of 2013, by how much and in what direction (higher or lower) would 2013 cost of goods sold be different under variable costing than under absorption costing?c. Express the digital voice recorder cost in a cost formula. What does this formula suggest the total cost of making an additional 500 recorders would be?
At the beginning of 2014, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. What is depreciation on the building for 2016? (Enter your answer in whole dollars)
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Discuss the following question which deals with financing that reduces exchange rate risk.
Garcia and Buffet, a local CPA firm, has budgeted $100,000 in fixed expenses per month for the tax department. It has also budgeted variable costs of $5 per tax return prepared for supplies, $35 per return for labor, and $10 per return for computer t..
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preparing balance sheetnbsp for forgetful insurance company.background this project provides a set of annual statements
Giovanni Company produces a product that requires four standard gallons per unit. The standard price is $34.00 per gallon. If 3,500 units required 14,400 gallons, which were purchased at $33.25 per gallon, what is the direct materials price variance?
Calculate the break-even point in (1) dollars and (2) number of fares. Without calculations, determine the contribution margin at the break-even point.
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