Answer:
Income reported under absorption costing =$440,000
Explanation:
<em>The income reported under absorption costing can be determined by adjusting the income under variable costing for difference in profit.</em>
<em>The steps are outlined below:</em>
<em>Step 1</em>
<em>Calculate the Overhead absorption rate</em>
OAR = Budgeted Fixed overhead/ Budgeted number of units
= $270,000/ 27,000 units
= $10
<em>Step 2</em>
<em>Calculate the change in inventory </em>
8500 units (given)
<em>Step 3</em>
<em>Calculate the difference in profit </em>=
<em> Difference in profit = OAR × change in inventory</em>
=8500×$10
= $85000
<em>Step 4</em>
<em>Calculate Income under absorption costing</em>
<em> = Income under variable costing + Difference in profit</em>
=$85,000 + $355,000
=$440,000
Income reported under absorption costing =$440,000
The yearly budget law, which covers the revenue and expenditure forecasts for a particular year, is planned, approved, executed, and audited within the permanent legal framework provided by the constitution, the budget organic law, and financial rules.
<h3>
What is the Importance of a Budget in business?</h3>
It allows the business owner to focus on cash flow, cost-cutting, boosting earnings and boosting returns on investment. The cornerstone of every successful firm is budgeting. It assists with both planning and maintaining control over the company's finances.
An evaluation of a company's anticipated financial resources or the resources needed to finish a project constitutes a budget estimate. A budget estimate is a rough estimation of the amount of money that will likely be needed to finish a project or the amount of money that will be predicted to be available to a firm or organization.
Learn more about Budget here:
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Answer:
The labor cost per unit is lowest for China and is $0.40 per unit
Explanation:
Country Labor Wage per Day Wages per Production Labor cost
count per labor Day units per day per Unit
L w W=L×w P l=W÷P
Myanmar 7 $2.50 17.50 38 $0.46
China 9 $2.00 18.00 45 $0.40
Billings/ 4 $57.00 228.00 102 $2.24
Montana
The labor cost per unit is lowest for China and is $0.40 per unit
