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In-s [12.5K]
3 years ago
12

Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $ 168 Units in beginning inventory 0 Units produced 9,650 Units sold 9,250 Units in ending inventory 400 Variable costs per unit: Direct materials $ 32 Direct labor $ 74 Variable manufacturing overhead $ 20 Variable selling and administrative expense $ 24 Fixed costs: Fixed manufacturing overhead $ 144,750 Fixed selling and administrative expense $ 10,200 What is the net operating income (loss) for the month under variable costing
Business
1 answer:
noname [10]3 years ago
4 0

Answer:

The net operating income for the month under variable costing is $11,550

Explanation:

In order to calculate The net operating income for the month under variable costing for Farron Corporation we would have to make the following calculations:

According to the given data:

i) Direct Material=$32  

ii) Direct labor=$74  

iii) Variable manufacturing overhead= $20  

Hence, Variable costing unit product cost (i + ii + iii)=  $126  

A) Sales ($168 per unit * 9250 units sold)=$1,554,000

B) Less variable expenses:  

Variable cost of goods sold  

($126 per unit * 9250 units sold)=$1,165,500  

Variable selling and administrative  

($24 per unit × 9250 units) $222,000 $1,387,500

C) Contribution margin (A – B)=$166,500

D) Less : fixed expenses  

Fixed manufacturing overhead= $144,750  

Fixed selling and administrative $10,200 $154,950

E) Net operating Income ( C-D)=$11,550

The net operating income for the month under variable costing is $11,550

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Answer:

Objective Theory

Explanation:

The Objective theory states that the intent to form a contract will be judged by outward objective facts such as the words and actions of the party instead of the secret, subjective intentions. This theory replaced the Subjective theory in the late nineteenth century. The former theory was of the opinion that the meeting of minds, which translates to the unexpressed intentions of the party would form a basis for interpreting the intent to form a contract.

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On April 30, 2017, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, w
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Answer:

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Explanation:

The computation of the depreciation expense for the year 2017 and 2018 is shown below:

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