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
Setler79 [48]
3 years ago
5

Manta Ray Company manufactures diving masks with a variable cost of $31. The masks sell for $40. Budgeted fixed manufacturing ov

erhead for the most recent year was $712,800. Actual production was equal to planned production. Required: State whether operating income is higher under variable or absorption costing and the amount of the difference in reported operating income under the two methods. Treat each condition as an independent case. (Do not round intermediate calculations.)
Business
1 answer:
riadik2000 [5.3K]3 years ago
8 0

Answer:

When there is no change in the beginning and ending units of inventory i.e the  units sold are equal to the units produced,the income under variable and absorption costing remains the same which is the condition in the given question.

Explanation:

If we have 80,000 units produced and sold then the income under both methods will be the same.

Manta Ray Company

Income Statement Variable Costing

Sales                $40*80,000=  $ 3200,000

Variable Costs $ 31*80,000=  $ 2480,000

Contribution Margin  $ 720,000

Less Fixed Costs $  $712,800

Gross Profit $ 7200

Manta Ray Company

Income Statement Absorption Costing

Sales                $40*80,000=  $ 3200,000

Variable Costs $ 31*80,000=  $ 2480,000

Fixed Costs $  $712,800

Gross Profit $ 7200

When there is no change in the beginning and ending units of inventory i.e the  units sold are equal to the units produced,the income under variable and absorption costing remains the same which is the condition in the given question.

If there is an increase in the inventory units ( ie. production is less than the Sales) the fixed manufacturing overhead cost is released from inventory and deducted from variable income.

Similarly when the inventory units decrease  ( ie. production is more than the Sales)  the fixed manufacturing overhead cost is deferred from inventory and added to variable income.

You might be interested in
Economic growth due to labor force expansion or capital investments will result in?
Hatshy [7]

Economic growth due to labor force expansion or capital investments will result in A rightward shift in long-run aggregate supply.

In general, economic processes occur as a results of increases within the production of products and services. Increased consumer spending, increased international trade, and businesses that increase their investment in capital spending can all impact the amount of production of products and services in an economy.

Because savings and investment increase the stock of capital, more investment in capital results in more economic processes. the quantity and quality of labor: As long as the capital per worker doesn't decrease, more labor results in more production.

A peak occurs when expansion reaches its climax. With an outsized sum of demand for goods, inflation occurs where costs begin to extend. Human capital affects economic processes and might help to develop an economy by expanding the knowledge and skills of its people.

Broadly speaking, there are two main sources of economic growth: growth within the size of the capital investments workforce and growth within the productivity (output per hour worked) of that workforce.

learn more about capital investments: brainly.com/question/1343622

#SPJ4

5 0
2 years ago
What is the most likely option an individual might research if saving for a short term goal
navik [9.2K]

For short term financial goals, it would be best to put the money in an investment that earns the highest interest while still remaining <em>liquid (</em>aka easy to withdraw your money when you want). In this case some good options would be a high-interest earning savings or money market account.

For short term goals you want to avoid investments that require you to tie your money up for long periods of time like bonds or certificates of deposit.

3 0
3 years ago
Read 2 more answers
Entrepreneurs who have the ability to effectively confront demands or stressors, and thus improve entrepreneurial performance, t
Aleksandr [31]

Any entrepreneurs that have the ability to effectively confront demands or stressors, and thus improve entrepreneurial performance, tend to have an <u>entrepreneurial self-efficacy</u>.

<h3>Who is an entrepreneurs?</h3>

This refers to the individual that starts and runs a business with limited resources, planning and responsible for all the risks and rewards of their business venture. Their business idea usually entails  a new product or service rather than an existing business model.

When an entrepreneur have a self-efficacy, it means he/she belief in his or her capacity to execute behaviors necessary to produce specific performance attainments.

Read more about entrepreneurs

brainly.com/question/13628349

#SPJ1

8 0
1 year ago
involves reviewing the project charter, requirements documents, and organizational process assets to create a scope statement, a
Setler79 [48]

Answer:

The correct answer is c. Controlling scope.

Explanation:

The scope of control is the number of employees that a manager supervises. Companies work to determine the optimal number that managers can monitor while being effective on the job. The more employees a manager supervises, the broader their scope of control. Both a wide and narrow control range have clear advantages.

Managers don't spend all their time supervising employees. Ideally, they should spend most of their work hours doing non-managerial activities. The number of people that each manager can effectively supervise and at the same time complete their work in a timely manner depends on many factors. These include the job types of their subordinates, the type of product produced, the management style of the company, the personalities, and the size of the organization.

5 0
3 years ago
Read 2 more answers
The relationship between borrowed reserves (BR), the nonborrowed monetary base (MBn), and the monetary base (MB) is Question 14
AnnyKZ [126]

Answer:

Option C.

Explanation:

Borrowed reserves = Monetary base - Nonborrowed monetary base

Borrowed reserves are the money that the Federal Reserves System member borrows from the Federal Reserve Bank to maintain the required reserve.

Amount of total currency which is in circulation in the public in the present time or the amount of currency which is held in the commercial bank deposits in the central bank's reserves is termed as Monetary Base.

The fund that is held by a financial institution in cash is termed as Nonborrowed Monetary Base.

3 0
3 years ago
Other questions:
  • Help please!!!
    10·1 answer
  • _____ is a term that describes a situation in organizations when there is a variety of demographic, cultural, and personal diffe
    14·1 answer
  • This activity is important because any business that offers multiple product lines to multiple market segments is faced with the
    14·1 answer
  • ________ seeks to better run an organization using complete and accurate information and management processes or controls.
    10·2 answers
  • Before the provision for Federal income tax, Karas Corporation had book income of $400,000 for the current year. The book income
    12·1 answer
  • Alternative price indexes Because there isn't one single measure of inflation, the government and researchers use a variety of m
    11·1 answer
  • A manufacturer makes and sells 2 products, P and Q. The revenue from the sale of each unit of P is $20.00 and the revenue from t
    5·1 answer
  • The main goals of an engineering ethics class if to memorize the professional codes of ethics as formulated by professional orga
    8·1 answer
  • This year Amy purchased $2,000 of equipment for use in her business.However, the machine was damaged in a traffic accident while
    6·1 answer
  • True or False: Homeowners in states like Texas or Florida may have to purchase special insurance based on their home's geographi
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!