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vladimir1956 [14]
3 years ago
9

gHenderson Ski Co. prepared a master budget that included $21,360 for direct materials, $33,600 for direct labor, $18,000 for va

riable overhead, and $46,440 for fixed overhead. Henderson planned to sell 2,000 units during the period, but actually sold 3,400 units. What would Henderson’ total costs be if it used a flexible budget for the period based on actual sales?
Business
1 answer:
Oksana_A [137]3 years ago
8 0

Answer:

Total cost= $170,472

Explanation:

Giving the following information:

Direct material= $21,360

Direct labor= $33,600

Variable overhead= $18,000

FIxed overhead= $46,440

Henderson planned to sell 2,000 units during the period, but sold 3,400 units.

First, we need to calculate the unitary variable cost:

Unitary variable cost= total variable cost/number of units

Unitary variable cost= (72,960/2,000)= $36.48

Now, we can calculate the total cost for 3,400 units

Total cost= total fixed cost  + total variable cost

Total cost= 46,440 + (36.48*3,400)= $170,472

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Answer:

Results are below.

Explanation:

<u>The absorption costing </u>method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

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Total unitary variable production cost= (24 + 16 + 2 + 3)= $45

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Total variable cost= 51,000*45= (2,295,000)

Contribution margin= 1,428,000

Fixed manufacturing overhead= (784,000)

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Net operating income= (28,000)

<u>Absorption costing income statement:</u>

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Unitary production cost= $56

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COGS= 51,000*56= (2,856,000)

Gross profit= 867,000

Total selling and administrative= 672,000 + 3*51,000= (825,000)

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Answer:

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Yield to maturity is the expected return if the bond is held till maturity. Current yiled is the return if the bond is sold today. There is an evident relationship between yield to maturity (TYM) and the current yield.  

“When a bond's market price is above par, which is known as a premium bond, its current yield and YTM are lower than its coupon rate. Conversely, when a bond sells for less than par, which is known as a discount bond, its current yield and YTM are higher than the coupon rate. Only on occasions when a bond sells for its exact par value are all three rates identical” (Bloomenthal, 2020).

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