# Buy Solved ACCT 346 Week 4 Homework plus Discussion

## Buy Solved ACCT 346 Week 4 Homework plus Discussion

##### ACCT-346 Week 4 Homework (graded)

1. Active Equipment produces high-quality basketballs. If the fixed cost per basketball is \$3 when the company produces 24,000 basketballs, what is the fixed cost per basketball when it produces 36,000 basketballs? Assume both volumes are in the same relevant

Identify the formula, then compute the new fixed cost per basketball when it produces 36,000 basketballs.

2. Pamela’s Quilt Shoppe sells homemade Amish quilts. … buys the quilts from local Amish artisans for \$270 each, and her shop sells them for \$470 She also pays a sales commission of 6% of sales revenue to her sales staff.

Pamela leases her country-style shop for \$1,400 per month and pays \$2,100 per month in payroll costs in addition to the sales commissions. Pamela sold 100 quilts in February. Prepare Pamela’s traditional income statement and contribution margin income statement for the month.

Prepare the traditional income statement for the month.

3. O’Sullivan’s Products manufactures a single product. Cost, sales, and production information for the company and its single product is as follows:

Requirement 1. Prepare an income statement for the upcoming year using variable costing.

Requirement 2. Prepare an income statement for the upcoming year using absorption costing.

4. Allen Manufacturing manufactures a single product. Cost, sales, and production information for the company and its single product is as follows:

Requirement 1. Prepare an income statement for the upcoming year using variable costing.

Requirement 2. Prepare an income statement for the upcoming year using absorption costing.

Requirement 3. What causes the difference in income between the two methods?

5. Wentworth Industries manufactures and sells a single product. The controller has prepared the following income statement for the most recent year:

The company produced 11,000 units and sold 7,500 units during the year ending December 31. Fixed manufacturing overhead (MOH) for the year was \$231,000, while fixed operating expenses were \$59,000. The company had no beginning inventory.

Requirement 1. Will the company’s operating income under variable costing be higher, lower, or the same as its operating income under absorption costing? Why?

Requirement 2. Project the company’s operating income under variable costing without preparing a variable costing income statement.

Requirement 3. Prepare a variable costing income statement for the year. (Use a minus sign or parentheses for a loss.)

6. The annual data that follow pertain to Rick’s Radical Eyewear, a manufacturer of swimming goggles (the company had no beginning inventory):

Requirements

• Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Rick’s Radical Eyewear for the
• Which statement shows the higher operating income? Why?
• The company’s marketing vice president believes a new sales promotion that costs \$155,000 would increase sales to 230,000 goggles. Should the company go ahead with the promotion? Give your reason

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Buy Solved ACCT 346 Week 4 Homework plus Discussion