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Setler [38]
3 years ago
15

Bellue Inc. manufactures a single product. Variable costing net operating income was $115,600 last year and its inventory decrea

sed by 2,300 units. Fixed manufacturing overhead cost was $4 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year
Business
1 answer:
Delicious77 [7]3 years ago
5 0

Answer:

absorption costing net operating income = $106400

Explanation:

Manufacturing overhead in inventory =  Fixed manufacturing overhead in ending inventory - Fixed manufacturing overhead in beginning inventory

Since the fixed overhead cost was $4 for both unit in beginning and in ending inventory

 $4 per unit × (−2,300) = −$9200

Variable costing net operating income =  $115600

subtract fixed manufacturing overhead costs released from inventory

(9200 )  from Variable costing net operating income

Absorption costing net operating income =  Variable costing net operating income -  fixed manufacturing overhead costs released from inventory

Absorption costing net operating income  = 115600 - 9200 =  $106400

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Furkat [3]
Records or flash drive
3 0
3 years ago
In a newsvendor model where the demand has normal distribution, if Co < Cu, i.e., the overage cost is lower than the underage
mars1129 [50]

Answer:

maximum

Explanation:

The newsvendor model may be defined as the mathematical model which is characterize by the fixed prices as well as the uncertain demand for the perishable products. This model is mainly used to determine the optimal inventory level.

According to the newsvendor model, there is only one opportunity to order. The cost of buying large quantities of the products may result in disposing them or selling the products at a lower price.

The optimal ordering quantity is maximum when the underage cost is higher than the overage cost.

8 0
2 years ago
Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per un
vovikov84 [41]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of 2017 is as follows: January February March April Estimated production in units 6,000 7,000 3,000 4,000

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

January:

Estimated manufacturing overhead rate= (80,000/6,000)+12= 25.33 per unit

February:

Estimated manufacturing overhead rate= $23.43

March:

Estimated manufacturing overhead rate= 38.67

April:

Estimated manufacturing overhead rate= $32

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

January= 6,000*25.33= $151,980

February= 7,000*23.43= $164,010

March= 3,000*38.67= 116,010

April= 4,000*32= $128,000

8 0
3 years ago
Darby's company reported net income after taxes of $2,000,000, on sales of $225 million. her boss asked her to calculate the ear
Dafna1 [17]
Darby's correct response is $0.045 per share.
Because we can calculate earnings per share by taking net income after taxes and then dividing it by the total number of common shares that are issued.
Income after taxes = <span>$2,000,000
shares = $44,000,000
Earnings per share = $2,000,000 / $44,000,000
=$2/$44
=$0.045</span>
3 0
3 years ago
The projected benefit obligation was $80 million at the beginning of the year. Service cost for the year was $10 million. At the
irinina [24]

Answer:

$87 million

Explanation:

The projected benefit obligation (PBO) is a measurement of the present amount of money needed by a company to cover future pension liabilities. PBO uses how long the employee will work and any increased future obligations to the employee's pension.

Given that:

PBO at the beginning of the year = $80 million

Service cost for the year =  $10 million

Interest =  Discount rate × PBO at beginning of the year = 5% × $80 million = 0.05 × $80 million = $4 million

Actuarial (gain) Loss = Amount paid - Expected money = $5 million - $4 million = $1 million

Benefits paid paid by trustees = $6 million

The total pension expense for the year = PBO at year beginning + Service cost + interest - Actuarial (gain) Loss - benefits = $80 million + $10 million + $4 million - $1 million - $6 million = $87 million

6 0
3 years ago
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