All categories

3 years ago

Income statement under absorption costing and variable costing

Business

1 answer:

Len [333]3 years ago

4 0

Answer:

unitary product cost= $102

Explanation:

Giving the following information:

Manufacturing costs Direct materials per unit $60

Direct labor per unit $22

Variable overhead per unit $8

Fixed overhead for the year $528,000

Units produced= 44,000

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

First, we need to calculate the unitary fixed overhead:

Unitary fixed overhead= 528,000/44,000= $12

Now, the unitary product cost:

unitary product cost= 60 + 22 + 8 + 12

unitary product cost= $102

You might be interested in

People who like working with their hands might enjoy a career as a

alexira [117]

Massage therapist or professional Typer

7 0

3 years ago

Read 2 more answers

The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation. Information about each firm

Nonamiya [84]

Answer:

The answer is "$4.311".

Explanation:

Calculating the EPS after the merger:

$\text{Stultz Corp Post Merger Earnings} = 220,000 + 1,000,000 \\\\$

$= \$1,220,000$

$\to \text{Number of Shares Post Merger:} \\\\=\frac{99,000}{3} + 250,000\\\\ = 283,000\\\\\text{EPS Post Merger} =\frac{\text{Stultz Corp Post Merger Earnings}}{\text{Number of Shares Post Merger}} \\\\$

$= \frac{1,220,000}{283,000} \\\\= \$4.311$

7 0

2 years ago

What is an exhibit?

Hunter-Best [27]

Answer:

exhibition for companies in a specific industry to showcase and demonstrate their new products and services. ... Also, an exhibition of businesses offering franchises and/or business opportunity packages for sale.

4 0

2 years ago

Who are the primary regulatory entities of the real estate business?

omeli [17]

Answer:

State regulation State governments are the primary regulatory entities of the real estate business. State governments establish real estate license laws and qualifications

Explanation:

A simple definition of real estate is that it is air, water, land, and everything

affixed to the land. Real estate in the United States may be owned privately by

individuals and private entities or publicly by government entities. Private

ownership rights in this country are not absolute. The government can impose

taxes and restrictions on private ownership rights, and it can take private

property away altogether. In addition, other private parties can exert their rights

and interests on one's real property. A bank, for example, can take a property if

the owner fails to pay a mortgage. A neighbor can claim the right to walk across

one's property whether the owner likes it or not, provided he or she has done so

for a certain number of years.

In attempting to define real estate, it is essential to understand what rights and

interests parties have in a parcel of real estate. And to understand real estate

rights and interests, one must first recognize the distinctions between:

 land and real estate

 real estate and property

 real property and persnal pro[perty

5 0

2 years ago

Q3) At an output level of 45,000 units, you calculate that the degree of operating leverage is 2.79. If output rises to 48,000 u

Luden [163]

Answer: 18.6%

Explanation:

Degree of operating leverage = % change in Operating cash flow / % change in output

% change in Output

= $\frac{48,000 - 45,000}{45,000}$

= 6.7%

Degree of operating leverage = % change in Operating cash flow / % change in output

2.79 = % change in Operating cash flow/ 6.7%

% change in Operating cash flow = 2.79 * 6.7%

% change in Operating cash flow = 18.6%

5 0

3 years ago