Diego Company manufactures one product that is sold for $71 per unit in two geographic...

70.2K

Verified Solution

Question

Accounting

image
image
image
image
image
image
image
Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-the East and West sold 37,000 units. regions The following information pertains to the company's first year of operations in which it produced 42,000 units and Variable costs per unit: Manufacturing: Direct materials Direct labor 21 $ 12 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and adminiscrative expense s 840,000 $330,000 company sold 27000 units in the East region and 10,000 units in the West region, It determined that $160,000 of its remaining $60,000 manufacturing overhead costs as long as it continues to produce any amount of its only product ing and administrative expense is traceable to the West region, $110,000 is traceable to the East region, and the is a common fixed expense. The company will continue to incur the total amount of its fixed 7. What is the amount of the difference between the variable costing and absorption costing net operat ing incomes (losses)? Difference of Variable Costing and Absorption Conting Net Operating Income (Losses) Variable costing net operating income (loss) Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-the East and West sold 37,000 units. regions The following information pertains to the company's first year of operations in which it produced 42,000 units and Variable costs per unit: Manufacturing: Direct materials Direct labor 21 $ 12 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and adminiscrative expense s 840,000 $330,000 company sold 27000 units in the East region and 10,000 units in the West region, It determined that $160,000 of its remaining $60,000 manufacturing overhead costs as long as it continues to produce any amount of its only product ing and administrative expense is traceable to the West region, $110,000 is traceable to the East region, and the is a common fixed expense. The company will continue to incur the total amount of its fixed 7. What is the amount of the difference between the variable costing and absorption costing net operat ing incomes (losses)? Difference of Variable Costing and Absorption Conting Net Operating Income (Losses) Variable costing net operating income (loss)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students