Answer:
The correct answer to the following question is $36,000.
Explanation:
Given information -
Units anticipated to be produced - 300,000 units
Variable cost - $150,000
Fixed cost - $600,000
Beginning inventory - 5000 units
Ending inventory - 7000 units
Income under absorption costing - $40,000
Now under the absorption costing, rate of fixed overhead cost per unit -
Fixed cost / Number of units produced
= $600,000 / 300,000
= $2
In April ( under absorption costing ), the amount of fixed manufacturing overhead cost that was still embedded in ending inventory but were not expense -
Fixed overhead rate per unit x number of units produced but not sold
= $2 x 2000 ( 7000 units - 5000 units )
= $4000
So when we calculate the operating cost under variable costing this fixed overhead cost wold be subtracted from total income -
$40,000 - $4000
= $36,000 .
Get rid of the “wrong customers”( ones who expectations are too high/ demanding)
Avoid discounts
Ofer something that your competitors can’t have
Answer:
a. 36,000
Explanation:
Calculation to determine what February production in units is:
Sales for the month 30,000
Add Ending inventory 15,000
(50,000*0.3)
Less Beginning inventory (9,000)
(30,000*0.3)
February production in units 36,000 units
Therefore February production in units is: 36,000 units
The amount subsequently paid to them best exemplifies vacancy cost
- Job costing is often used by companies that produce a one of a kind, custom-ordered products, or mostly small set of different products. firms use job costing when their products or services differs in when looking at material needed, time required to complete the job, and/or complexity of production
- The amount paid to them is vacancy cost, because they are doing the work another staff is supposed to do.
Conclusively, we can say that the amount subsequently paid to them best exemplifies vacancy cost
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The Hofstede’s cultural dimension that would explain this difference is the uncertainty orientation. The uncertainty theory is used to explain how different people do different things because of their cultural and values that differentiate. Since this example shows how different people from various cultures would react to a situation, it is describing the uncertainty orientation. There are many factors that will shape a persons decision on a situation.