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docker41 [41]
1 year ago
11

During Heaton Company's first two years of operations, the company reported absorption costing net operating income as follows:

The company's 18 unit product cost is computed as follows: Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the two years are:
(a) Prepare a variable costing contribution format income statement for each year.
Business
1 answer:
const2013 [10]1 year ago
7 0

The unit product cost under variable costing is computed as follows:

Direct materials                                    $ 4

Direct labor                                               7

Variable manufacturing overhead           1

Variable costing unit product cost      $12

With this figure, the variable costing income statements can be prepared:

                                                                  Year 1                          Year 2

Unit sales                                                40,000 units             50,000 units            

Sales                                                       $1,000,000               $1,250,000

Variable expenses:

The variable cost of goods sold

($12 per unit)                                        480,000                   600,000

Variable selling and administrative

expenses ( $2 per unit)                        80,000                    100,000

Total variable expenses                         560,000                   700,000

 

Contribution margin                               440,000                     550,000

 

Fixed expenses:

 Fixed manufacturing overhead            270,000                    270,000

Fixed selling and administrative             130,000                     130,000

expenses

Total fixed expenses                               400,000                    400,000

Net operating income                            $40,000                     $150,000.

An annual record is a record that public organizations must provide annually to shareholders that describes their operations and economic situations. a report that gives unique information approximately what a corporation has completed and how successful it has been.

Learn more about Income statements here:-brainly.com/question/21851842

#SPJ4

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Sid purchased an automobile for personal
Aloiza [94]

Answer:

Part A. $1200

Part B. $1200  

Explanation:

Part A.

Under MACRS rules, the depreciation rate for the 5 year recovery period asset would be:

Year 1    20%

Year 2   32%

Year 3   19.2%

Year 4   11.52%

Year 5   11.52%

Year 6   5.76%

This means that the first year MACRS depreciation deduction would be 20% which is $1200 ($6000 * 20%).

Part B.

If Sid does not elect Section 179 expensing then the depreciation would be calculated using straight line basis.

The depreciation would be:

Depreciaiton Expense = $6000 / 5 Years life   = $1200

8 0
3 years ago
The numerator of the return on common stockholders' equity is_____________. a.income before income tax b.operating income minus
elena-s [515]

The numerator of the return on common stockholders' equity is net income minus preferred dividends.

Option d

<u>Explanation:</u>

Return on common stockholders' equity which is also named as return on equity (ROE) ratio evaluates the accomplishment of a company in resulting income for the benefit of common stakeholders.

<em>Use of return on equity:</em>

  • Isolates common equity returns
  • Can be used to evaluate dividends
  • Evaluates the use of capital by the management

It is calculated by income available for stockholders divided by the total number of common stock and is expressed or represented in percentage. Income available for common stockholders can be arrived by reducing preference dividends from Net income.

That is, \text { Net income }-\text { Preference dividends }=\text { Equity available for common stockholder }

Hence, net income minus preferred dividends is the right answer.

3 0
3 years ago
Which economist most supported the idea that poor workers would
Alla [95]
Thomas Robert Malthus is the economist who supported it the most
6 0
3 years ago
Read 2 more answers
0. Westcomb, Inc. had equity of $150,000 at the beginning of the year. At the end of the year, the company had total assets of $
Nadusha1986 [10]

Answer:

18.24

Explanation:

Sustainable growth rate is the rate of growth a company can afford in the long term

sustainable growth rate = retention rate x ROE  

b = retention rate. It is the portion of earnings that is not paid out as dividends

Retention rate = 1 - payout ratio =

payout ratio = dividend / net income

retention rate = 1 - $44,640 / 72,000 = 0.38

Return on equity = net income / average total equity

= 72,000 / 150,000 = 0.48

g = 0.48 x 0.38 = 18.24%

3 0
3 years ago
Each year a company selects a number of employees for a management training program. On average, 60 percent of those sent comple
Gnesinka [82]

Answer:

the probability that exactly 8 complete the program is 0.001025

Explanation:

given information:

60 % of those sent complete the program, p = 0.6

the total of people being sent, n = 27

exactly 8 complete the program, x = 8

to find the probability, we can use the following formula

P(X=x)=\left[\begin{array}{ccc}n\\x\\\end{array}\right] p^{x} (1-p)^{n-x}

P(X=8)=\left[\begin{array}{ccc}27\\8\\\end{array}\right] 0.6^{8} (1-0.6)^{27-8}

P(X=8)=\left[\begin{array}{ccc}27\\8\\\end{array}\right] 0.6^{8} (0.4)^{19}

                = 0.001025

3 0
3 years ago
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