1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alchen [17]
3 years ago
10

Homeyer Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 71 Manu

facturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 6 Variable manufacturing overhead $ 3 Fixed manufacturing overhead per year $ 264,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 74,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 11,000 12,000 Units sold during the year 8,000 14,000 Units in ending inventory 3,000 1,000 The net operating income (loss) under absorption costing in Year 1 is closest to:
Business
1 answer:
Alex3 years ago
4 0

Answer:

Net operating profit= 102,000

Explanation:

Giving the following information:

Selling price per unit $ 71

Manufacturing costs:

Direct materials $ 12

Direct labor $ 6

Variable manufacturing overhead $ 3

Fixed manufacturing overhead per year $ 264,000

Selling and administrative expenses:

Variable selling and administrative expense per unit sold $ 4

Fixed selling and administrative expense per year $ 74,000

Year 1

Units in beginning inventory 0

Units produced during the year 11,000

Units sold during the year 8,000

Units in ending inventory 3,000

Year 2

Units in beginning inventory 3,000

Units produced during the year 12,000

Units sold during the year 14,000

Units in ending inventory 1,000

Unitary cost= (12 + 6 + 3) + (264,000/11,000)= $45

Income statement:

Sales= (8,000*$71)= 568,000

COGS= (8,000*45)= 360,000 (-)

Gross profit= 208,000

Variable selling and administrative= (4*8000)= 32,000 (-)

Fixed selling and administrative expense= 74,000 (-)

Net operating profit= 102,000

You might be interested in
a. As far as the tax code is concerned, HeadBook will increase its expenses by $5,000 in either case. If it pays for the policy,
polet [3.4K]

Answer: $1,750

Explanation:

Incurring a health insurance cost of $5,000 or increasing salaries by $5,000 will have the same effect on the taxes because they will both be removed from the income before the taxes are calculated.

The reduction in tax in either case is:

= Expense * Tax rate

= 5,000 * 35%

= $1,750

8 0
3 years ago
Angelina has again found herself frustrated at work. Her manager, for whatever reason, never makes a decision. If anything is to
hichkok12 [17]

Answer:

The correct option is E , laissez-faire

Explanation:

Option A,autocratic is not correct since the scenario painted an opposite scenario and autocratic approach to management means the manager tells the subordinates what to do.

Bureaucratic is when decision making is slow because many stakeholders are expected to jointly decide.

However,laissez-faire is an approach where subordinates are allowed to think out of the box and get tasks accomplished without manager's interference.

8 0
3 years ago
Park is always willing to give up 1 orange for 3 tangerines. (1) What is the size of MRSTO (marginal rate of substituting tanger
Step2247 [10]

Answer:

1/3

Explanation:

What is the size of MRSTO = 1 /3

The marginal rate of substitution calculates the rate at which a consumer would give up a unit of one good in exchange for one unit of another good while maintaining the same level of utility.

5 0
3 years ago
Accounts receivable in an existing business:
Artemon [7]

Answer:

The correct answer is letter "A": are rarely worth their face value.

Explanation:

Accounts receivables are notes issued to customers after selling them a product or rendering services on credit. The repayment term may vary from 30, 60 or 90 days. If an account receivable is not paid after that period it could be considered as an uncollectible account which implies the company will incur losses.

<em>Accounts receivable are hardly ever accepted at face value (real value of the moment of the purchase) because companies add the interest rate that is to be charged for the sale on the account.</em>

4 0
3 years ago
What does it mean when an economist says that a consumer has demand for a good or service?
FrozenT [24]
Demand means the consumers want the product or service. If there is a demand, companies must supply. "supply and demand"
7 0
3 years ago
Other questions:
  • On January 1, Year 1, Grade Company paid $300,000 for 20,000 shares of Medium Company's common stock, which represents a 15% inv
    12·1 answer
  • It is recommended that you create a budget for each (a)month (b)day (c)week (d)year
    15·2 answers
  • Lorinda has started to think about saving for retirement. She reads a recommendation that says she should save at least 3/10 of
    6·1 answer
  • Which of the following is the formula for break-even point in sales dollars? A : Fixed costs divided by contribution margin rati
    7·1 answer
  • Who is credited with pioneering the principles of the scientific approach to management
    12·1 answer
  • Homer wants to borrow money from the springfield bank to buy a trampoline. The bank requires collateral for loan what is collate
    13·1 answer
  • Sarah buys 500 shares of stock at $18 and sells the holding for a capital gain of $3,000. What was the share price at the time o
    7·1 answer
  • Need help on econ please and thank you
    11·1 answer
  • BioScience Inc. will pay a common stock dividend of $3.20 at the end of the year (D1). The required return on common stock (Ke)
    11·1 answer
  • If the long-run average total cost curve for a firm is horizontal in a relevant range of production, then it indicates that ther
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!