Huron Chalk Company, Case 8-43 at the end of Chapter 8 help

Jul 16th, 2016
KateS
Category:
Art Design
Price: $10 USD

Question description

Huron Chalk Company manufactures sidewalk chalk which it sells online by the box at $25 per unit. Huron uses an actual costing system, which means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into work-in-progress inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Huron’s first two years of operation is as follows:

Year 1

Year 2

Sales (in units)

2,500

2,500

Production (in units)

3,000

2,000

Production Costs:

Variable Manufacturing Costs

$10,500

$7,000

Fixed Manufacturing Overhead

21,000

21,000

Selling and Administrative Expenses

Variable

12,500

12,500

Fixed

10,000

10,000


2.What was Huron’s total operating income across both years under absorption costing and under variable costing?

3. What was the total sales revenue across both years under absorption costing and under variable costing?

4. What was the total of all costs expensed on the operating income statements across both years under absorption costing and under variable costing?


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: Cornell University
PREMIUM TUTOR

Hello,Please find the solutions attached.  If you have any questions, please do not hesitate to ask.P.S. If you stop at any cell, you will be able to see the formula used in calculating the solutionsAll the best

Huron Chalk Company
Sales Price

Sales (in Units)
Production
Production Costs:
Variable Manufacturing Costs
Fixed Manufacturing Costs
Selling & Administrative Expenses:
Variable
Fixed
Huron Chalk Company
Selected Balance Sheet ...

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