Answer:
1. $53.75 per direct labor hour
2. $80.625 per machine hour
Explanation:
Total manufacturing overhead costs= $1112500+$500000 = $1612500
Total direct labor hours= 11000+19000=30000
Total machine hours= 5000+15000=20000
1. Company’s single plantwide overhead rate based on direct labor hours
= Estimated overhead costs/Estimated direct labor hours
=$1612500/30000
=$53.75 per direct labor hour
2. Company’s single plantwide overhead rate based on machine hours
= Estimated overhead costs/Estimated Machine hours
=$1612500/20000
=$80.625 per machine hour
Answer:
a. Traditional Income Statement
Sales ($125 x 140) $17,500
Cost of Sales ($60 x 140) <u>($8,400)</u>
Gross Profit $9,100
Salaries ($1,300)
Rent ($1,000)
Sales Commission ($17,500 x 5%) <u>($875) </u>
Net income <u>$5,925</u>
b. Contribution Margin Income Statement
Sales ($125 x 140) $17,500
Less: variable Costs
Cost of Sales ($60 x 140) ($8,400)
Sales Commission ($17,500 x 5%) <u>($875) </u>
Contribution Margin $8,225
Less: Fixed Costs
Salaries ($1,300)
Rent <u>($1,000)</u>
Net income <u>$5,925</u>
Explanation:
a.
Traditional Income statement calculates the gross profit after deducting the cost of goods sold from the revenue. After that it deduct all the operating expenses to calculate the Net Income.
b.
Contribution margin income statement consider all the variable expenses as cost of product cost and calculates the contribution margin, after that the fixed costs are deducted calculate the net income.
Answer:
67%
Explanation:
Money supply = Money multiplier * Deposit worth
3 = Money multiplier * 2
Money multiplier = 3/2
Money multiplier = 1.5
Now, Money multiplier = 1 / Reserve ratio
1.5 = 1 / Reserve ratio
Reserve ratio = 1/1.5
Reserve ratio = 0.6667
Reserve ratio = 67%
So, the percent of deposits the banks hold as reserves is 67%
Answer:
Whispering Winds Gross profit is $402,100
Explanation:
Multi step income statement differentiate the the operating revenue and expenses from non operating revenue and expenses. It shows the gross profit, operating profit and net profit separately.
Whispering Winds Corp.
Income statement for the year 2019
Net sales $973,000
Less: Cost of goods sold <u>$570,900</u>
Gross Profit $402,100
Less:Operating expenses <u>$220,300</u>
Operating Profit $181,800
Less: Interest expense <u>$14,600 </u>
Profit before Tax $167,200