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makvit [3.9K]
3 years ago
15

Osawa, Inc., planned and actually manufactured 260,000 units of its single product in2017 , its first year of operation. Variabl

e manufacturing cost was $26 per unit produced. Variable operating (nonmanufacturing) cost was $11 per unit sold. Planned and actual fixed manufacturing costs were $ 520,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $ 370000. Osawa sold 180,000 units of product at $ 44 per unit.
Requirement 1. Osawa 's 2017 operating income using absorption costing is
(a) $ 530,000 , (b) $ 370,000 , (c) $ 740,000 , (d) $900,000, or (e) none of these. Show supporting calculations.
Business
1 answer:
AVprozaik [17]3 years ago
7 0

Answer:

(a) $ 530,000

Explanation:

total production 260,000 units

variable manufacturing $26 per unit = $6,760,000

variable S&A $11 per unit

planned and actual fixed manufacturing $520,000

planned and actual fixed S&A $370,000

total costs during the year = $10,510,000

units sold 180,000 x $44 = $7,920,000

cost of goods sold per unit = ($26 x 180,000) + (180,000 x $520,000/260,000) = $4,680,000 + $360,000 = $5,040,000

total operating expenses = ($11 x 180,000) + $370,000 = $1,980,000 + $370,000 = $2,350,000

net income = $7,920,000 - $5,040,000 - $2,350,000 = $530,000

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Answer - A (7 years)


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Cost saved annually = Cost of old refrigerator – Cost of new refrigerator.

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$598 ÷ $88.2

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7 0
3 years ago
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Answer: $24

Explanation:

Given that,

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Total revenue from Two workers = 16 × $4

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Total revenue from Three workers = 22 × $4

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3 years ago
Angela Fox and Zooey Caulfield were food and nutrition majors at State University, as well as close friends and roommates. Upon
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Answer:

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  0.25x + 0.50y ≤ 20 . . . . . kitchen hours cannot exceed 20

  x/y ≥ 3/2 . . . . . . at least 3 fish dinners for each 2 beef dinners will be sold

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While satisfying these relations, we want to maximize the profit function:

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  Maximize 12x +16y, subject to ...

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