[The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $71 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 42,000 units and sold 37,000 units.   Variable costs per unit:      Manufacturing:         Direct materials $ 21            Direct labor $ 12            Variable manufacturing overhead $ 3            Variable selling and administrative $ 5      Fixed costs per year:      Fixed manufacturing overhead $ 840,000         Fixed selling and administrative expenses $ 330,000    The company sold 27,000 units in the East region and 10,000 units in the West region. It determined that $160,000 of its fixed selling and administrative expenses is traceable to the West region, $110,000 is traceable to the East region, and the remaining $60,000 is a common fixed cost. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.  1. value: 10.00 points Required information Required: 1. What is the unit product cost under variable costing? eBook & Resources eBook: Explain how variable costing differs from absorption costing and compute unit product costs under each method. eBook: Prepare a segmented income statement that differentiates traceable fixed costs from common fixed costs and use it to make decisions. eBook: Prepare income statements using both variable and absorption costing. eBook: Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ. Check my work  2. value: 10.00 points Required information 2. What is the unit product cost under absorption costing? eBook & Resources eBook: Explain how variable costing differs from absorption costing and compute unit product costs under each method. eBook: Prepare a segmented income statement that differentiates traceable fixed costs from common fixed costs and use it to make decisions. eBook: Prepare income statements using both variable and absorption costing. eBook: Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ. Check my work  3. value: 10.00 points Required information 3. What is the company’s total contribution margin under variable costing? eBook & Resources eBook: Explain how variable costing differs from absorption costing and compute unit product costs under each method. eBook: Prepare a segmented income statement that differentiates traceable fixed costs from common fixed costs and use it to make decisions. eBook: Prepare income statements using both variable and absorption costing. eBook: Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ. Check my work  4. value: 10.00 points Required information 4. What is the.

1. [The following information applies to the questions displayed
below.]
Diego Company manufactures one product that is sold for $71
per unit in two geographic regions—the East and West regions.
The following information pertains to the company’s first year
of operations in which it produced 42,000 units and sold 37,000
units.
Variable costs per unit:
Manufacturing:
Direct materials
$
21
Direct labor
$
12
Variable manufacturing overhead
$
3
Variable selling and administrative
$
5
Fixed costs per year:
Fixed manufacturing overhead
$
840,000
Fixed selling and administrative expenses

2. $
330,000
The company sold 27,000 units in the East region and 10,000
units in the West region. It determined that $160,000 of its
fixed selling and administrative expenses is traceable to the
West region, $110,000 is traceable to the East region, and the
remaining $60,000 is a common fixed cost. The company will
continue to incur the total amount of its fixed manufacturing
overhead costs as long as it continues to produce any amount of
its only product.
1.
value:
10.00 points
Required information
Required:
1.
What is the unit product cost under variable costing?
eBook & Resources
eBook: Explain how variable costing differs from absorption
costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that
differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.
Check my work

3. 2.
value:
10.00 points
Required information
2.
What is the unit product cost under absorption costing?
eBook & Resources
eBook: Explain how variable costing differs from absorption
costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that
differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.
Check my work
3.
value:
10.00 points
Required information
3.
What is the company’s total contribution margin under variable
costing?
eBook & Resources
eBook: Explain how variable costing differs from absorption

4. costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that
differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.
Check my work
4.
value:
10.00 points
Required information
4.
What is the company’s net operating income (loss) under
variable costing?
eBook & Resources
eBook: Explain how variable costing differs from absorption
costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that
differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.
Check my work
5.
value:

5. 10.00 points
Required information
5.
What is the company’s total gross margin under absorption
costing?
eBook & Resources
eBook: Explain how variable costing differs from absorption
costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that
differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.
Check my work
6.
value:
10.00 points
Required information
6.
What is the company’s net operating income (loss) under
absorption costing?
eBook & Resources
eBook: Explain how variable costing differs from absorption
costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that

6. differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.
Check my work
7.
value:
10.00 points
Required information
7.
What is the amount of the difference between the variable
costing and absorption costing net operating incomes (losses)?
eBook & Resources
eBook: Explain how variable costing differs from absorption
costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that
differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.
Check my work
8.
value:
10.00 points

7. Required information
1.
What is the company’s break-even point in unit sales?
2.
Is it above or below the actual sales volume?
eBook & Resources
eBook: Explain how variable costing differs from absorption
costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that
differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.
Check my work
10.
value:
10.00 points
Required information
10.
What would have been the company’s variable costing net
operating income (loss) if it had produced and sold 37,000
units?

8. eBook & Resources
eBook: Explain how variable costing differs from absorption
costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that
differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.
Check my work
11.
value:
10.00 points
Required information
11.
What would have been the company’s absorption costing net
operating income (loss) if it had produced and sold 37,000
units?
eBook & Resources
eBook: Explain how variable costing differs from absorption
costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that
differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.

9. Check my work
12.
value:
10.00 points
Required information
12.
If the company produces 5,000 fewer units than it sells in its
second year of operations, will absorption costing net operating
income be higher or lower than variable costing net operating
income in Year 2?
eBook & Resources
eBook: Explain how variable costing differs from absorption
costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that
differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.
Check my work
14.
value:
10.00 points
Required information
14.
Diego is considering eliminating the West region because an
internally generated report suggests the region’s total gross

10. margin in the first year of operations was $10,000 less than its
traceable fixed selling and administrative expenses. Diego
believes that if it drops the West region, the East region's sales
will grow by 5% in Year 2. Using the contribution approach for
analyzing segment profitability and assuming all else remains
constant in Year 2, what would be the profit impact of dropping
the West region in Year 2?
eBook & Resources
eBook: Explain how variable costing differs from absorption
costing and compute unit product costs under each method.
eBook: Prepare a segmented income statement that
differentiates traceable fixed costs from common fixed costs
and use it to make decisions.
eBook: Prepare income statements using both variable and
absorption costing.
eBook: Reconcile variable costing and absorption costing net
operating incomes and explain why the two amounts differ.
Check my work
15.
value:
10.00 points
Required information
15.
Assume the West region invests $32,000 in a new advertising
campaign in Year 2 that increases its unit sales by 20%. If all
else remains constant, what would be the profit impact of
pursuing the advertising campaign?
5 years ago
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43. following-information-applies-questions-displayed-below-
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