Variable Costing Chapter 21 Exercises

Variable and Absorption Costing In-Class Exercises: Exercise No. Page E21-13 1299 Absorption Costing Operating Income

Variable and Absorption Costing Exercise E21-13: Decker, Inc. has collected the following data for November (there are no beginning inventories): Units produced and sold…………………….. 450 units Sales price………………………………………$ 275 per unit Direct materials………………………………… 52 per unit Direct labor……………………………………… 64 per unit Variable manufacturing overhead………...... 18 per unit Fixed manufacturing overhead……………… 7,875 per month Variable selling and administrative costs…. 25 per unit Fixed selling and administrative costs…….. 4,950 per month Requirements: (1) Using absorption costing, calculate the unit product cost. (2) Prepare an income statement using the traditional format.

Variable and Absorption Costing

Variable and Absorption Costing

Variable and Absorption Costing End of Exercise

Variable and Absorption Costing In-Class Exercises: Exercise No. Page E21-14 1299 Variable Costing Operating Income

Variable and Absorption Costing Exercise E21-14: Decker, Inc. has collected the following data for November (there are no beginning inventories): Units produced and sold…………………….. 450 units Sales price………………………………………$ 275 per unit Direct materials………………………………… 52 per unit Direct labor……………………………………… 64 per unit Variable manufacturing overhead………...... 18 per unit Fixed manufacturing overhead……………… 7,875 per month Variable selling and administrative costs…. 25 per unit Fixed selling and administrative costs…….. 4,950 per month Requirements: (1) Using variable costing, calculate the unit product cost. (2) Prepare an income statement using the contribution margin format.

Variable and Absorption Costing

Variable and Absorption Costing

Variable and Absorption Costing End of Exercise