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tigry1 [53]
3 years ago
8

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per

unit, Direct labor, $3 per unit, Variable overhead, $4 per unit, and Fixed overhead, $250,000. The company produced 25,000 units, and sold 20,000 units, leaving 5,000 units in inventory at year-end. Income calculated under variable costing is determined to be $315,000. How much income is reported under absorption costing? Group of answer choices $365,000 $290,000 $315,000 $265,000 $565,000
Business
1 answer:
docker41 [41]3 years ago
3 0

Answer:

424000

Explanation:

Answer: Net income under absorption costing = $424000

Explanation:

Given that,

Direct materials =$4 per unit

Direct labor = $2 per unit

Variable overhead = $3 per unit

Fixed overhead = $256,000

company produced = 32,000 units

company sold = 26,500 units

inventory at year-end =  5,500 units

Income under variable costing = $380,000

Total variable cost = (Direct materials+Direct labor +Variable overhead) × units produced

= (4+2+3) × 32000

=$288000

Per unit fixed cost =

=

= $8

Fixed cost on inventory = inventory at year-end × Per unit fixed cost

= 5500 × 8

= 44000

Net income under absorption costing = Income under variable costing + Fixed cost on inventory

= 380000 + 44000

=$424000

Read more on Brainly.com - brainly.com/question/13025383#readmore

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Answer:

C. debit cash, credit premium on bonds payable and bonds payable

Explanation:

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3 years ago
The quantity demanded of Blu-ray players increased 9% when the price of DVDs increased 5%. What is the estimated cross-price ela
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Answer:

cross price elasticity of demand = 1.8

Explanation:

cross price elasticity of demand = % change in quantity of X / % change in price of Y

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Why is opening a franchise often considered lower risk for an entrepreneur than setting up a new business?Please help me will gi
ivolga24 [154]

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The opportunity to grow under a famous brand and enjoy the advantages of a larger group of business owners

Explanation:

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Use the midpoint method when applicable to calculate the price elasticity of demand.
Neko [114]

Answer:

Follows are the solution to the given points:

Explanation:

In point a:

This business of plastic containers is increasing its Lunchbox Product Signature price around $3.00 and $4.00.   The volumes produced consequently declined around 20,000 to 15,000.

\text{Price elasticity} =  \frac{\frac{15000-20000}{(\frac{15000+20000}{2})}}{\frac{4-3}{(4+\frac{3}{2})}}

                        =\frac{\frac{-5000}{(\frac{35000}{2})}}{\frac{1}{(\frac{7}{2})}}\\\\=\frac{\frac{-5000}{17500}}{\frac{1}{3.6}}\\\\=\frac{\frac{-50}{175}}{\frac{1}{3.6}}\\\\= \frac{-0.2857}{0.2857} \\\\ =-1

The price elasticity also becomes unitary

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U.S. economic theory states that the elasticity of fuel demand is 0.5 because prices would be less than 1 and so are non-elastic.

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The capital Metro agrees and add $2.00 to $2.21 also for bus fares. Consequently, with an average of 70,000 drivers a days to both a daily average 61,000 drivers, its passenger numbers who take the bus in Austin falls.

\text{Price elasticity} = \frac{\frac{61000-70000}{(61000+ \frac{70000}{2})}}{ \frac{2.21-2}{(2.21+\frac{2}{2})}}

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The value being higher than 1 is elastic.

5 0
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