Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

problem: The Independence Corporation had the following manufacturing information for the year 2006 [in thousands of dollars].

Starting and ending inventories none

Direct material used $400

Direct labor 330

Supplies 20

Utilities-variable portion 40

Depreciation 200

Property taxes 20

Supervisory salaries 50

Utilities-fixed portion 12

Indirect labor-variable portion 90

Indirect labor-fixed portion 40

Selling expenses were $300,000 [including $60,000 that was variable] & general administrative expenses were $144,000 [including $23,000 that was variable]. Sales were $1.8 million. 

Direct labor & supplies are regarded as variable costs.

[A] Make two (2) income statements, one using the contribution approach & one using the absorption approach.

[B] Assume that all variable costs fluctuate directly in proportion to sales & that fixed costs are unaffected over a very wide range of sales. Estimate, what would operating income have been if sales had been $2.0 million instead of $1.8 million? Which income statement did you use to obtain your answer? describe your answer.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M923258

Have any Question? 


Related Questions in Cost Accounting

The budgeted and actual revenues and expenditures of

The budgeted and actual revenues and expenditures of Seaside Township for a recent year (in millions) were as presented in the schedule that follows:  1. Prepare journal entries to record the budget. 2. Prepare journal e ...

Assignment - task specificationthis case study is designed

Assignment - Task Specification This Case Study is designed for you to demonstrate your abilities in relation to the following subject learning outcomes (see Subject Outline) Case Study - Seafarer Kayaks Your team (group ...

In your accounting career you will be required to analyse

In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues and your clients. For this assignment assume that you are ...

Cost accounting assessment - group reportlearning outcomesa

Cost Accounting Assessment - Group Report Learning outcomes a) Select devise and apply different types of cost allocation and explain their different roles for supporting strategic managerial decision making. b) Design a ...

Module cost of capital worksheetthe assignment in this

Module Cost of Capital Worksheet The assignment in this module builds on the idea of forecasting and valuation theory from Chapters 6 and 7 in Module Six by valuing a company through calculations using real data. This wi ...

The cost of capitalassume that you are a member of an

The Cost of Capital Assume that you are a member of an aerospace company's newly formed executive committee that has been given the role of reviewing requests for major capital expenditures. The committee chairman has la ...

Cost of capitalthe intent of this assignment is to

Cost of Capital The intent of this assignment is to demonstrate proficiency in determining the costs of capital for the firm. It is a comprehensive problem in that you first need to determine the cost of each source of c ...

Question1 which of the following statements concerning job

Question 1. Which of the following statements concerning job costing systems is incorrect? a. Cost drivers are those items which cause actual overhead to exceed applied overhead. b. Job costing systems are appropriate to ...

Part 1maintaining and controlling projectshow does evm

Part 1 Maintaining and Controlling Projects How does EVM operationalize or put into practice the management of trade-offs implied by the triple constraint discussed since the beginning of the course? Does it allow a bala ...

Cool ride skis ltd case studyit is the end of 2015 and

COOL RIDE SKIS LTD CASE STUDY It is the end of 2015 and Grace Miller, senior management accountant for Cool Ride Skis Ltd has been analysing the Victorian division's 2015 results. Both she and the company's Managing Dire ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate