The board of directors will pay dividends to the stockholders.
Answer:
Part I :
1) Total amount of oats allowed = 960000*16 = 15360000 ounce
2) Total amount of labor hours allowed = 960000*.04 = 38400 Hours
<u>Part II :
</u>
1) Total amount of oats allowed = 750000*17 = 12750000 ounce
2) Total amount of labor hours allowed = 750000*.04 = 30000 Hours
Answer:
Gross profit= 131,500
Explanation:
Giving the following information:
Last quarter, RP Enterprises earned $220,000 in sales revenue and had $90,000 cost of goods sold (at standard). RP also experienced these variances: Materials price: $2,400 F Materials quantity: $1,400 U Labor price: $2,000 U Labor quantity: $1,000 F Overhead: $1,500 F
To calculate the cost of goods sold, we use actaul costs and quantity of direct labor and direct materials. Therefore, the only estimated cost is overhead.
Gross profit= 220,000 - 90,000 + 1,500= 131,500