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3 years ago

If units produced are greater than units sold: Multiple Choice

Business

2 answers:

jolli1 [7]3 years ago

8 0

Answer:

The correct option is 1

Explanation:

In Absorption costing, all production costs: direct labor, direct materials, and factory overhead whether fixed or variable are considered products costs.

In variable costing, only direct materials, direct labor and variable factory overhead are considered product costs.

So if units are produced are greater than units sold Absorption cost will be greater than Variable cost and vice versa.

jenyasd209 [6]3 years ago

5 0

Answer:

The correct answer is option 1

Explanation:

If units produced are greater than units sold absorption costing net operating income is greater than variable costing net operating income.:

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Answer:

Explanation:

The adjusting entry is shown below:

Supplies expense A/c Dr $6,100

To supplies A/c $6,100

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The supplies expense is computed by

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= $3,500 + $4,800 - $2,200

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Immediately after an ice storm brought down power lines throughout the region, hardware stores were sold out of batteries and fl

Lisa [10]

Answer:

D) Markets allocate goods effectively.

Explanation:

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If the stores would have needed government permission for replenishing their inventories, they would have never done it so fast and so efficiently.

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3 years ago

Currently, you make one of the components needed for final assembly of your product and you are considering buying the part from

VashaNatasha [74]

Answer:

1. Break even quantity is 18,125 units

2. Cost to make 28,000 units = $ 775,000

3. Total costs to buy 28,000 units = $ 696,000

4. Savings by using low cost option ( buy from outside) $ 79,000

Explanation:

Computation of Break even point

Variable cost to make equipment in house $ 25 per unit

Cost to purchase the unit from outside $ 17 per unit

Differential Cost per unit $ 8 per unit

Fixed costs to be paid to outside supplier $ 220,000

Fixed costs to be incurred in house $ 75,000

Incremental fixed costs $ 145,000

Break even point - Differential in fixed costs / Differential cost per unit

$ 145,000/ $ 8 = 18,125 units

Computation of costs to make 28,000 units

Variable costs per unit - $ 25 per unit

Units to be produced - 28,000 units

Total Variable costs $ 25 * 28,000 units $ 700,000

Fixed costs $ 75,000

Total costs to make 28,000 units $ 775,000

Computation of costs to buy 28,000 units

Variable costs per unit - $ 17 per unit

Units to be produced - 28,000 units

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Fixed costs $ 220,000

Total costs to make 28,000 units $ 696,000

Computation of savings

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Making 28,000 units $ 696,000

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3 years ago

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Answer:

B. Institute of Management Accountants (IMA)

Explanation:

B. Institute of Management Accountants (IMA)

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It is a member of different international accounting bodies and firms .

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