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
wariber [46]
3 years ago
9

A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera

tions:
Selling price $131
Units in beginning inventory 0
Units produced 2,940
Units sold 2,740
Units in ending inventory 200
Variable cost per unit:
Direct materials $44
Direct labor $19
Variable manufacturing overhead $13
Variable selling and administrative $12
Fixed costs:
Fixed manufacturing overhead $85,260
Fixed selling and administrative expenses $16,440
The total gross margin for the month under absorption costing is?
Business
1 answer:
ZanzabumX [31]3 years ago
6 0

Answer:

$71,240

Explanation:

The computation of the total gross margin under absorption costing is shown below:

As we know that

Gross Margin = Sales - Variable Manufacturing Cost - Fixed Manufacturing Overhead For Units Sold

Sales (2,740 units × $131) $358,940

Less Manufacturing Costs  

Direct Materials (2,740 units × $44) $120,560

Direct Labor (2,740 units × $19) $52,060

Variable Manufacturing Overhead (2,740 units × $13) $35,620

Fixed Manufacturing Overhead ($85,260 ÷ 2,740 units ÷ 2,940 units) $79,460

Gross Margin                         $71,240

We simply applied the above formula

You might be interested in
The first economist was:​
Roman55 [17]

Adam Smith was the first

8 0
3 years ago
If the marginal propensity to consume is equal to 0.85, then a $500 increase in disposable income leads to a:
AlekseyPX

The question is incomplete. The complete question is stated below.

If the marginal propensity to consume is equal to 0.85, then a $500 increase in disposable income leads to a:

a. $400 increase in consumption spending

b. $75 increase in consumption spending

c. $425 increase in personal saving

d. $75 increase in personal saving

Answer:

If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving. Thus, option D is the correct answer.

Explanation:

The marginal propensity to consume or MPC is the percentage of the additional income that will be used for consumption spending. It is a concept that is used to calculate how much of an increase in income will be used in consumption and saving. The formula to calculate MPC is,

MPC = Change in consumer spending / Change in income

0.85 = Change in consumer spending / 500

500 * 0.85 = Change in consumer spending

Change in consumer spending = $425

If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving.

8 0
2 years ago
Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 5,000 shares of $
asambeis [7]

Answer and Explanation:

1. Cash Dr, $120,000

         To Common Stock $100,000    (5,000 × $20)

         To Additional Paid - in - Capital in Excess of Par $20,000

(Being issue of common stock is recorded)

2. Cash Dr, $28,000

         To Common Stock Dr, $2,500   (2,500 × $1)

         To Additional Paid - in - Capital in Excess of Stated $31,500

(To record issue of common stock to promoters)

3. Organization Expenses Dr, $28,000

          To Common Stock Dr, $28,000

(Being issue of common stock in exchange of organization expenses is recorded)

4. Cash Dr, $121,750

          To Preferred Stock $93,750  (1,250 × $75)

          To Additional Paid - in - Capital in Excess of Par (Preferred) $28,000

(Being issue of Preferred stock is recorded)

8 0
3 years ago
For an airline, which of the following would not be an operational budget? A cash receipts budget of flying consumers. A budget
katrin [286]

Answer:

A cash receipts budget of flying consumers.

Explanation:

Operational budget is defines as all the profits and expenses a business realises as a result of planning it's operations.

Usually an operational budget is set before activities begin, and is a target to be achieved.

For an airline cash receipts of flying customers is not a revenue realised as a result of planning operations, so this is the correct answer.

However a fuel budget, material budget for parts, and labour budget for flight crew are operational budgets.

4 0
3 years ago
Read 2 more answers
Which of the following statements are true about this natural monopoly? Check all that apply. The cable company is experiencing
solong [7]

Answer:

The answers are It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. And It is true that without government regulation, natural monopolies can earn positive profit in the short run.

Explanation:

It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.

Without government regulation, natural monopolies can earn positive profit in the short run.  It is a true statement.

3 0
3 years ago
Read 2 more answers
Other questions:
  • Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $15,000 cash and inventory with a fair valu
    6·1 answer
  • Glubert corp., an adhesive manufacturing company, makes a deal with an insurance company to provide its employees with life insu
    9·1 answer
  • 16.
    6·1 answer
  • A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
    9·1 answer
  • I WILL GIVE BRAINLIEST
    13·1 answer
  • The following data is given for the Bahia Company: Budgeted production (at 100% of normal capacity) 1,074 units Actual productio
    5·1 answer
  • A home equity loan can be risky because the lender can foreclose if you don’t make your payments
    13·2 answers
  • The growth of industry is related to the growth of immigration in the late 19th century because:
    7·1 answer
  • Explain briefly the purpose<br> of the Computer Management Console in Microsoft Windows.
    12·1 answer
  • If a firm hires an additional worker and discovers that its total output has fallen, then it must be true that:________
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!