Student Name:
Class:
Normal New
Volume Business Combined
2,400,000$ 260,000$ 2,660,000$
576,000 72,000 648,000
144,000 27,000 171,000
320,000 30,000 350,000
150,000 150,000
100,000 5,000 105,000
Total costs and expenses
1,110,000$ 126,000$ 1,236,000$
Correct! Correct! Correct!
576,000$
400,000
1.44$
50,000
72,000$ «- Correct!
144,000$
0.54$
Units of output
Cost per unit
Overtime per unit
New business direct labor cost per unit
50,000
27,000$ «- Correct!
320,000$
80,000
240,000$
400,000
0.60$
50,000
30,000$ «- Correct!
Cost per unit
New business volume
New business variable overhead cost
New business direct labor cost
Total overhead
Fixed overhead
Variable overhead
Units of output
Normal direct labor cost
New business volume
Normal direct materials cost
Units of output
Cost per unit
New business volume
New business direct materials cost
Operating income
Supporting Computations
Costs and expenses:
Direct materials
Direct labor
Overhead
Selling expenses
Administrative expenses
Comparative Income Statements
JONES PRODUCTS
Sales
Problem 23-01A
McGraw-Hill/Irwin
Instructor
6.00$
400,000
576,000$
144,000
320,000
150,000
100,000
1,290,000$
50,000
5.20$
100%
50%
25%
5,000$
–$
1,110,000$
126,000$
Given Data P23-01A:
(1) Operating income
(2) Operating income
Increase per unit for direct labor costs
Fixed portion of overhead costs (350,000 to 500,000 units)
Increase in administrative expenses
Additional selling expenses
Check figures:
Wholesalers’ proposal:
Packages to be sold
Price per package
Study of costs reveals:
Variable portion of direct materials
Direct labor
Overhead
Selling expenses
Administrative expenses
Total costs and expenses
JONES PRODUCTS
Sales price of markers per package
Packages manufactured and sold
Production and sales costs:
Direct materials