《Management Accounting 7th管理会计 Don R.Hansen》ch15.pptVIP

Chapter 1 - Units in beginning inventory --- Units produced 10,000 Units sold ($300 each) 8,000 Normal volume 10,000 Direct materials $ 50 $ 50 Direct labor 100 100 Variable overhead 50 50 Fixed overhead 25 Production, Sales, andIncome Relationships 15 -* Segment Reporting and Performance Evaluation CHAPTER 1. Discuss the differences between variable and absorption costing. 2. Explain how variable costing is useful in evaluating the performance of a manager. 3. Prepare a segmented income statement based on a variable-costing approach, and demonstrate how to use this format with activity-based costing to assess customer profitability. Objectives After studying this chapter, you should be able to: 4. Show how variable costing can be used in planning and control. Objectives Direct materials Direct labor Variable overhead Variable costing assigns only variable manufacturing costs to the product. Absorption costing assigns all manufacturing costs to the product; this adds fixed overhead to the formula. Direct materials Direct labor Variable overhead Fixed overhead Inventory Valuation Variable cost per unit: Direct materials $ 50 Direct labor 100 Variable overhead 50 Variable selling and administrative 10 Fixed costs: Fixed overhead $250,000 Fixed selling and administrative 100,000 Unit Cost Variable Absorption costing costing $250,000 10,000 Direct materials $ 50 $ 50 Direct labor 100 100 Variable overhead 50 50 Fixed overhead 25 Total $200 $225 Unit Cost Variable Absorption costing costing Fairchild Company Variable-Costing Income Statement Sales $2,400,000 Less variable expenses: Variable cost of goods sold $1,600,000 Variable selling and admin. 80,000 1,680,000 Contribution margin $ 720,000 Less fixed expenses: Fixed overhead $ 250,000 Fixed selling and admin. 150,000 350,000 Net income $ 370,000 Fairchild Company Absorption-Costing Income Statement Sales $2,