1. Whitehall Company sells a single product for $25. It had no beginning inventories. Operating data follow. Sales,...

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1. Whitehall Companysells a single product for $25. It had no beginning inventories.Operating data follow.
Sales, 27,000units                                   $675,000
Normalcapacity                                   30,000 units
Production costs:
Variable perunit                                       $13
Fixedproduction                                   $150,000
Selling andadministrative expenses:
Variable per unitsold                                   $2
Fixedselling                                       $20,000
Number of unitsproduced                          32,500 units
Assume the actualcosts were as budgeted.
a.Find contributionmargin per unit.
b.Compute the endinginventory under standard variable costing.
c.Compute the incomeunder standard variable costing.
Assume standardabsorption costing using normal capacity as the basis for computingthe standard fixed cost per unit. Compute
d.Standard grossprofit per unit.
e.Endinginventory.
f.Volume variance.
g.Income.
2. Lund Company sellsa single product for $25. It had no beginning inventories.Operating data follow.
Sales, 55,000units                                 $1,375,000
Normalcapacity                                   60,000 units
Production costs:
Variable perunit                                       $13
Fixedproduction                                   $300,000
Selling andadministrative expenses:
Variable per unitsold                                   $2
Fixedselling                                       $40,000
Number of unitsproduced                          66,000 units
Assume the actualcosts were as budgeted.
a. Compute incomeunder standard variable costing.
b. Compute incomeunder standard absorption costing.
3. Maiden Rock Companysells a single product for $25. It had no beginning inventories.Operating data follow.
Sales, 20,000units                                   $500,000
Normalcapacity                                   30,000 units
Production costs:
Variable perunit                                       $13
Fixedproduction                                   $150,000
Selling andadministrative expenses:
Variable per unitsold                                   $2
Fixedselling                                       $20,000
Number of unitsproduced                          32,500 units
Assume the actualcosts were as budgeted.
a.Find Maiden Rock’sincome under standard variable costing.
b.Find Maiden Rock’sincome under standard absorption costing.

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Whitehall Company Sales Unit 27000 Sales Price Unit 25 Total Sales 675000 Production Capacity 30000 Produced 32500 Variable Production Cost per Unit 13 Variable Selling Administrative Cost per Unit 2 Fixed Production Cost 150000 Fixed Selling Administrative Cost 20000 a Contribution margin per unit Sales Price Unit 25 Variable Production Cost per Unit 13 Variable Selling Administrative Cost per Unit 2 Contribution margin per Unit 10 b Ending Inventory Under standard Variable Costing Inventory Produced 32500 Inventory Sold 27000 Balance Inventory 5500 Variable Cost per Unit 13 Ending Inventory Under standard variable costing 71500 C Income under standard variable costing Sales Price See Answer

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