Answer:
Net Income under absorption costing =$1,700
Explanation:
<em>Absorption costing is a method of costing where production units and inventories are value at the full cost per unit. Here, fixed overheads are charged to all units produced using an overhead absorption rate</em>
<em>The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads</em>
Overhead absorption rate = Overhead for the period/
Net Income = (1200 × $10) - (1200× $6.50) - 2,500
= $1,700
Net Income under absorption costing =$1,700
Answer:
Higher
If that is not one of the answer choices, just put down the answer choices so i can tell you the answer. Hope this helps.
Explanation:
Answer:
Explanation:
a) To maximise profit, we would charge a price of 7 for adults and a price of 4 for children.
Profit would be = 7 x 300 + 4 x 200
Profit = 2900
This is the maximum profit other than fixed cost
b) If we have to keep one price of the ticket, then it would be 7. This would yeild a profit of 2100
c) From the law, the adults dont get any benefit, rather the children are in best position of free ticket
d) Fixed cost wont effect the answers above as long as the price and numbers of participants wont change
Answer:
With the correcting entry method, the wrongly posted account will transfer the amount that was to be posted elsewhere to the place it was to be posted in. In this case the posting was to be to Accounts Receivable not Service fees so:
Date Account Title Debit Credit
May 23 Service Fees $1,270
Accounts Receivable $1,270
