Answer:
$105,075
Explanation:
The computation of the operating income is shown below:
Sales (4 × 69,500) $278,000
Less:Variable costs (0.95 × 69,500 + 5% × 278,000) $79,925
Contribution margin $198,075
Less: fixed cost (13,000 + 80,000) $93,000
Net operating income $105,075
We simply deduct the variable cost and the fixed cost from the sales to arrive at the net operating income
Answer:
$3,762
Explanation:
The computation is as seen below
Total cost when the production is 9,900 units
Direct materials $8,316
Direct labor $11,187
Variable overhead $12,474
Total $31,977
But,
Their new cost on supplier offer is
= $2.85 × 9,900 units
= $28,215
In the case when the order is accepted, the net income would increase by
= $31,977 - $28,215
= $3,762
Answer:
II. Prevention costs are costs that are incurred to prevent the sale and production of defective units.
The cost of adding more options. Supply and demand: would the students want to have salad for lunch, or would it go to waste?
Answer:
A. The amount of fixed overhead deferred in inventories is $60,000
Explanation:
Unit product cost
Year 1 Year 2
Direct materials $12 $12
Direct labor $5 $5
Variable manufacturing
overhead $5 $5
Fixed overhead
$48 $36
($432,000 ÷ 9,000) ($432,000 ÷ 12,000)
unit product cost $70 $58
Fixed overhead deferred (1,000 × $48) $48,000
Fixed overhead released -$48000
Fixed overhead deferred (3000 × $36) $108,000
Net $48,000 $60,000
The amount of fixed overhead deferred in inventories is $60,000
