Answer:
question isn't clear. any answers???
I think your answer should be c. Hope this helps. :)
Answer:
<u>Pro forma income statement in contribution format</u>
Sales ( 2,200 units × $ 12.00) 26,400
Less Variable Costs :
Variable manufacturing cost ( 2,200 units × $ 7.20) (15,840)
Contribution 10,560
Less Expenses :
Fixed manufacturing cost (3,600)
Fixed selling and administrative cost (1,200)
Net Income 5,760
Explanation:
A flexed budget shows the Budgeted Costs and Revenues at Actual level of production rather than the Budgeted level of production.
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Answer:
1. $590
2. $9.83
Explanation:
1.
Total Number of Direct Labor Hours:
= Total Labor Cost ÷ Labor Rate Per Hour
= 150 ÷ 15
= 10 Hours
Total Overheads:
= Total Number of Direct Labor Hours*Predetermined Overhead Rate
= 10 × 21
= 210
Total Manufacturing Cost = 230 + 150 + 210
= $590
2.
Average Cost:
= Total Manufacturing Cost ÷ Number of Units
= 590 ÷ 60
= $9.83
Answer:
The indifference policy advocates that dividends are irrelevant.
Explanation:
The indifference Policy holds that that dividends do not add value to a company’s stock price.
According to this theory, investors do not need to concern themselves with a company's dividend policy since they have the option to sell a portion of their portfolio of equities if they want cash.
This school of thought believes that a company’s declaration and payment of dividends should have little to no impact on the stock price.
