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nadezda [96]
3 years ago
7

Net income computed under absorption costing will be: higher than net income under variable costing when units produced are grea

ter than units sold. higher than net income under variable costing when units produced are less than units sold. higher than net income under variable costing in all cases. equal to net income under variable costing in all cases.
Business
1 answer:
nordsb [41]3 years ago
4 0

Answer:

higher than net income computed under variable costing when units produced are greater than units sold

Explanation:

Absorption costing and variable costing techniques are used to compute the accounting cost of various operation. The calculation procedures of both the techniques are different; that is why the results are different. The net income under absorption costing is higher because it takes into account the indirect expenses and indirect costs. Likewise, absorption costing technique also includes manufacturing or overhead cost.

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The income statement of Dolan Corporation for 2012 included the following items:
torisob [31]

Answer:

C) $16,000.

Explanation:

cash paid for insurance premiums = total insurance expense + ending balance of prepaid insurance - beginning balance of prepaid insurance

cash paid for insurance premiums = $15,200 + $3,000 - $2,200 = $16,000

Generally when you purchase an insurance policy you can either pay every month or pay for several months in advance and get a discount. When you pay for several months in advance, you must debit prepaid insurance. Then as time passes, you must accrue insurance expense. For e.g. you pay $2,400 today for a 1 year insurance premium, and at the end of the month you will accrue $200 of insurance expense. But your cash payment was made today.

8 0
2 years ago
On January 1, 2018, Brussels Enterprises issues bonds at par dated January 1, 2018, that have a $3,400,000 par value, mature in
pashok25 [27]

Answer:

a. Record the entry for the issuance of bonds for cash on January 1, 2018.

January 1, 2018, bonds are issued

Dr Cash 3,400,000

    Cr Bonds payable 3,400,000

b. Record the entry for the first semiannual interest payment on June 30, 2018.

June 30, 2018, first coupon payment

Dr Interest expense 153,000

    Cr Cash 153,000

c. Record the entry for the second semiannual interest payment on December 31, 2018.

December 31, 2018, second coupon payment

Dr Interest expense 153,000

    Cr Cash 153,000

d. Record the entry for the maturity of the bonds on December 31, 2021 (assume semiannual interest is already recorded).

December 31, 2021, payment of bonds payable

Dr Bonds payable 3,400,000

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6 0
2 years ago
Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 39,000 units
Gemiola [76]

Answer:

Each product will be allocated with 38.30 dollars of manufacturing overhead as both takes 0.81 DLH

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

To calcualte the overhead rate we need to distribute the expected cost over the expected cost driver, in this case, labor hours:

(39,000 + 8,000) x 0.81 DLH = 38,070 labor hous

$1,800,000 overhead / 38,070 DLH =  47,281323877

the overhead per hour is $47.28

overhead per product:

47,281323877 x 0.81 = 38,29787234 = <u><em>38.30</em></u>

4 0
3 years ago
Samuel is designing an engaging website for a furniture manufacturing company. What benefit would this website offer consumers?
ludmilkaskok [199]

Answer:

C) It would allow them to look at the furniture products that the company offers.

Explanation:

Setting up a website would be beneficial to the company, which will have its products on display, and may even make online sales, but especially to consumers, who can observe the types of wood products that this company produces. This can make consumers analyze products without having to go to the store, which makes buying something more comfortable.

4 0
3 years ago
Should all bank trasactions be recorded
NARA [144]

Answer:yes

Explanation:

Yes indeed.

5 0
2 years ago
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