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My name is Ann [436]
3 years ago
7

The Parsons Company experienced the following costs in 2007: Direct materials $4.50/unit Direct labor $8.00/unit Manufacturing O

verhead Costs Variable $2.00/unit Fixed $150,000 Selling & Administrative Costs Fixed selling $15,000 Variable selling $1.50/unit Fixed administrative $10,000 During the year the company manufactured 60,000 units and sold 55,000 units. If net income for the year was $114,000 using full costing, what would net income be if the company used variable costing? Assume no beginning inventories. $94,000 $134,000 $126,500 $101,500
Business
1 answer:
Delicious77 [7]3 years ago
5 0

Answer:

$101,500

Explanation:

The computation of the net income under the variable costing is shown below:

= Net income + opening inventory - closing inventory

where,

Net income is $114,000

Opening inventory is zero

And, the closing inventory is not given, so we have to compute it

Since the company manufactured 60,000 units and sold 55000 units so, the remaining inventory would be considered as closing units i.e $5,000 (60,000 units - 55,000 units)

Now the fixed manufacturing overhead will be computed for 5,000 units. The calculation is shown below:

= (Fixed manufacturing overhead) × (closing units ÷ number of units manufactured)

= $150,000 × (5,000 units ÷ 60,000 units)

= $12,500

Now put these values to the above formula  

So, the value would equal to

= $114,000 + $0 - $12,500

= $101,500

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Answer:

$19,350

Explanation:

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3 years ago
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3 0
1 year ago
If workers are more educated, then short-run aggregate supply ___________.
Yakvenalex [24]

Answer:

O will increase and output and price level will increase as well.

Explanation:

If workers are more educated, the productivity of the country will increase, increasing total output. As investment in training increases, so thus the workers' capacity to perform more efficiently. Also, when the demand for better (or more) trained workers increases, the salary level will also increase. As workers gain training and/or experience, their salaries increase, e.g. on average, a person with a college degree earns much more than someone with just a high school degree. This increase in the level of salaries will lead to an increase in the general price level.

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The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a
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Answer:

decrease in the day's sales inventory

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This situation will be reflected in the firm's financial ratios in the form of a decrease in the day's sales inventory.

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2 years ago
Which is the best timeline entry based on the information above (1 point)?
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3 years ago
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