1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nekit [7.7K]
3 years ago
14

During its first year of operations, the McCormick Company incurred the following manufacturing costs:_______. Direct materials,

$4 per unit, Direct labor, $2 per unit, Variable overhead, $3 per unit, and Fixed overhead, $224,000. The company produced 28,000 units, and sold 19,000 units, leaving 9,000 units in inventory at year-end. Income calculated under variable costing is determined to be $360,000. How much income is reported under absorption costing? a. $432,000 b. $360,000 c. $584,000 d. $288,000
Business
1 answer:
notka56 [123]3 years ago
6 0

Answer:

Net income= $432,000

Explanation:

Giving the following information:

Fixed overhead, $224,000.

The company produced 28,000 units, and sold 19,000 units, leaving 9,000 units in inventory at year-end.

Income calculated under variable costing is determined to be $360,000.

The difference between absorption costing and variable costing method is that the first one includes the fixed manufacturing cost in the unitary production cost. <u>Some of the fixed overhead is allocated into ending inventory increasing the net income for the period.</u>

Unitary fixed overhead= 224,000/28,000= $8

Fixed overhead in ending inventory= 8*9,000= $72,000

Net income= 360,000 + 72,000= $432,000

You might be interested in
To what degree a country's legal system is based on the rule of law matters little in international business.
marissa [1.9K]

Rule of law is very important in case of country’s legal system

This means that no one can be regarded to be above the law in a society where the rule of law exists. In a parliamentary democracy, the rule of law places a duty on all citizens to uphold the law, and in order to do so, the legislation must be just and not arbitrary. The goal of the rule of law, like other constitutional concepts, is to advance peoples' freedom and basic rights.

People and corporations must abide by the regulations set forth by the rule of law in order to avoid penalties. The rule of law establishes norms for businesses so that they, too, know what is required of them in their transactions and enables people to comprehend what is expected of them in their personal capacities.

Learn more about rule of law at

brainly.com/question/820417

#SPJ4

3 0
1 year ago
A factory building is an example of which factor of production?
Luba_88 [7]

Answer:

The making and delivery of the product.

Explanation:

Because in a factory it manufactures the product that they are making and send them to stores to sell the products for money.

5 0
3 years ago
Based on your understanding of the relationship between relative inflation rates and exchange rates, identify whether the preced
lys-0071 [83]

Answer:

b.the statement is invalid because the nominal

Explanation:

pa brainliest po

6 0
1 year ago
Assume the following information for Teal Mountain Corp.
jek_recluse [69]
He whew eh i’m like hehe good i’m how are you
3 0
3 years ago
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $16.00
lara [203]

Answer:

$164,210 decrease

Explanation:

Calculation to determine what would be the amount of differential cost increase or decrease from making the part rather than purchasing it

Differential cost increase or decrease=(32,842 * 16)- (32,842 * 11)=

Differential cost increase or decrease=$525,472-$361,262

Differential cost increase or decrease=$164,210 decrease

Therefore what would be the amount of differential cost increase or decrease from making the part rather than purchasing it is $164,210 decrease

6 0
3 years ago
Other questions:
  • A company purchased merchandise to be resold at increasing costs during the year 2019. The purchases were made at the following
    12·1 answer
  • Clayton, inc. purchased a van on january 1, 2016, for $850,000. estimated life of the van was five years, and its estimated resi
    9·1 answer
  • Excerpt from Areojet Corporation Per Unit Per Month Selling price $ 200,000 Direct materials 40,000 Direct labor 10,000 Variable
    15·1 answer
  • Jordan wants to retire in 35 years. She wants to have $75,000 per year in retirement and she expects retirement to last for 35 y
    13·1 answer
  • In 2010, many high-income countries will be focused on the short-term economic horizon due to aggressive and often controversial
    10·1 answer
  • Help me im a failure <br> im not pretty,and im not happy,im suffering,help,depression
    9·1 answer
  • Schweitzer realized that in many cases individuals could only accomplish direct human service in collaboration with official org
    6·1 answer
  • Jerome has insignificant influence of Melina Corporation because it owns less than 20% of the voting stock. The cost of the Meli
    11·1 answer
  • An investor implements a collar strategy by purchasing 100 shares of the Tesla stock at a price of $840 per share, selling 100 c
    11·1 answer
  • margot inc, which uses the perpetual inventory system, purchases 500 units of inventory to be held for resale. margot should deb
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!