1. Variable Costing
Chapter 21
Exercises

2. Variable and Absorption Costing
In-Class Exercises:
Exercise No Page
E Absorption Costing Operating Income

3. Variable and Absorption Costing
Exercise E21-13:
Decker, Inc. has collected the following data for November (there are no beginning inventories):
Units produced and sold…………………… units
Sales price………………………………………$ per unit Direct materials………………………………… per unit Direct labor……………………………………… per unit Variable manufacturing overhead……… per unit Fixed manufacturing overhead……………… 7,875 per month Variable selling and administrative costs… per unit Fixed selling and administrative costs…….. 4,950 per month
Requirements: (1) Using absorption costing, calculate the unit product cost. (2) Prepare an income statement using the traditional format.

4. Variable and Absorption Costing

5. Variable and Absorption Costing

6. Variable and Absorption Costing
End of Exercise

7. Variable and Absorption Costing
In-Class Exercises:
Exercise No Page
E Variable Costing Operating Income

8. Variable and Absorption Costing
Exercise E21-14:
Decker, Inc. has collected the following data for November (there are no beginning inventories):
Units produced and sold…………………… units
Sales price………………………………………$ per unit Direct materials………………………………… per unit Direct labor……………………………………… per unit Variable manufacturing overhead……… per unit Fixed manufacturing overhead……………… 7,875 per month Variable selling and administrative costs… per unit Fixed selling and administrative costs…….. 4,950 per month
Requirements: (1) Using variable costing, calculate the unit product cost. (2) Prepare an income statement using the contribution margin format.

9. Variable and Absorption Costing

10. Variable and Absorption Costing

11. Variable and Absorption Costing
End of Exercise