The net operating income as per the variable costing method is $14500
<u>Explanation:</u>
The unit product cost is = $18 + $10 + $4 = $32
Sales revenue ( $78 multiply with 8700 units) = $678600
Variable cost:
Variable cost of goods sold ( 8700 units multiply $32) = $278400
Variable selling and administartive (8700 units multiply $5) = $43500
contribution margin = $356700
fixed manufacturing overhead = $255200
Fixed selling and adminstrative expenses = $87000
Net operating income = $14500
<u>Note:</u> contribution margin is calculated after deducting sales revenue with variable cost
Answer:
The spending variance for "Employee salaries and wages" for March would have been closest to $1,200F
.
Explanation:
Customers served (q)
Employee salaries and wages ($58,400 + $1,000q)
The spending variance for "Employee salaries and wages" for March would have been closest to
Actual Results Flexible Budget Revenue and Spending Variances
(q) 26 26
($58,400 + $1,000q) $ 83,200 $ 84,400 $1,200F
Answer:
$248,600
Explanation:
The computation of amount of manufacturing overhead is shown below:-
Amount of manufacturing overhead would have been applied = Predetermined overhead rate × Actual direct labor-hours
= $22.60 × 11,000
= $248,600
Therefore for computing the amount of manufacturing overhead we simply multiply the Predetermined overhead rate with Actual direct labor-hours
Answer:
a. is that the advertiser has no control over where the ad appears in the newspaper.
Explanation:
Run-of-paper (ROP) is another term for advertisement in the newspaper. The main feature of this type of advertisement is that it costs very low and the ad can be placed anywhere on the paper.
The ad is placed by the editors and publishers where they believe it would be best suited in the paper. This means that the advertisers have no control over where the ads are posted in the paper. The only option the advertisers have is to decide on the size of the ad.
