In which step of the production process are

Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of

pantera1 [17]

Answer:

a:Total Variable Costs $26

a:Total Manufacturing Costs = $ 30

b:Net Income Variable Costing $100,000

b: Net Income Absorption Costing $ 100,000

Explanation:

Smuckers Manufacturers

Costs per case under Variable Costing

Direct materials per case 16

Direct labor per case 7

Variable manufacturing overhead per case 3

Total Variable Costs $26

Costs per case under Absorption Costing

Direct materials (30,000*16) 480,000

Direct labor (30,000*7) 210,000

Variable manufacturing overhead (30,000*3) 90,000

Total Variable Costs 780,000

Total fixed manufacturing overhead $120,000

Total Manufacturing Costs $ 900,000

Total Manufacturing Costs per Case= $ 900,000/ 30,000= $ 30

The difference between the variable and absorption costing is that the product costs include variable and fixed costs in absorption costing. But in variable costing the product costs include only variable costs.

SMUCKERS

Variable Costing Income Statement

For the Third Quarter of 2017

Sales (30,000*34) 1020,000

Direct materials (30,000*16) 480,000

Direct labor (30,000*7) 210,000

Variable manufacturing overhead (30,000*3) 90,000

Total Variable Costs 780,000

Contribution Margin 240,000

Fixed Expenses 140,000

Total fixed manufacturing overhead $120,000

Fixed selling and administrative 20,000

Net Income 100,000

In this case the net income under both variable and absorption costing does not change because the units produced are units sold. No cost is charged to ending inventory under absorption costing.

SMUCKERS

Absorption Costing Income Statement

For the Third Quarter of 2017

Sales (30,000*34) 1020,000

Direct materials (30,000*16) 480,000

Direct labor (30,000*7) 210,000

Variable manufacturing overhead (30,000*3) 90,000

Total fixed manufacturing overhead $120,000

Total Manufacturing Costs 900,000

Gross Profit 120,000

Fixed Expenses 20,000

Fixed selling and administrative 20,000

Net Income 100,000

3 0

4 years ago

When the Federal Reserve lends money to banks and other financial institutions because no one else will, it is: Please choose th

inessss [21]

The Federal reserve is acting as a lender of last resort when its lends money to banks and other financial institutions because no one else will/

<h3>What is the Federal Reserve?</h3>

It is the United states central banking system that is responsible for the nation's monetary policy and regulation of the supply of money and interest rates.

One of the role of Federal reserve is to act as a lender of last resort when its lends money to banks and other financial institutions because no one else will.

Therefore, the Option A is correct.

Read more about Federal Reserve

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7 0

2 years ago

If an organization does not develop programs in-house, then the development group of the information system (IS) department will

Nitella [24]

Answer:

C) Business and systems analysts

Explanation:

Business and systems analysts primarily work with users, operations, and vendors to acquire and install licensed software and to set up the system components around that software.

They can be found in the information system (IS) department of an organization.

4 0

4 years ago

Read 2 more answers

Rudy Smith was an wealthy individual and has passed away with many assets in his estate. What value would be used to assess prop

fgiga [73]

Answer:

fair market value

Explanation:

The current estate tax (2020) only applies for estates worth over $11.58 million. For taxation purposes, estates are taxed at fair market value. E.g. Rudy bought a building 10 years ago at $10 million, but it is now worth $15 million, the current market value ($15 million) will be used to determine any applicable estate taxes.

8 0

3 years ago

Saunders and Flimsy Partnership paid dividends of $0.27 and $0.15 per share last year. If yesterday's closing price was $12.27,

Dmitrij [34]

Answer:

the current yield on the stock is 3.42%

Explanation:

the computation of the current yield on the stock is shown below:

Current yield = Annual dividends paid ÷ Current market closing price

= ($0.27 + $0.15) ÷ $12.27

= $0.42 ÷ $12.27

= 3.42%

hence, the current yield on the stock is 3.42%

we simply applied the above formula to determine the current yield on the stock

7 0

3 years ago