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
lozanna [386]
3 years ago
12

During May, Bergan Company incurred factory overhead costs as follows: indirect materials, $8,800; indirect labor, $6,600; utili

ties cost, $4,800; and factory depreciation, $9,000. Journalize the entry to record the factory overhead incurred during May.
Business
1 answer:
Klio2033 [76]3 years ago
8 0

Answer:

Dr Factory Overhead $29,200

Cr Materials 8800

Cr Wages payable 6600 Cr Utilities Payable 4800

Cr Accumulated Depreciation-Factory 9000

Explanation:

Preparation of the entry to record the factory overhead incurred during May.

Dr Factory Overhead $29,200

($8,800 + $6,600 + $4,800 + $9,000)

Cr Materials 8800

Cr Wages payable 6600 Cr Utilities Payable 4800

Cr Accumulated Depreciation-Factory 9000

(To record the factory overhead incurred during May)

You might be interested in
Which of the following is the best example of supporting language acquisition?
Elodia [21]

A is the answer

Because the rest do not make sense

6 0
3 years ago
Selling price $ 110,000 $ 110 100 % Variable expenses 60,000 60 55 % Contribution margin 50,000 $ 50 45 % Fixed expenses 30,000
Molodets [167]

Answer:

Increase in income= $5,000

Explanation:

Giving the following information:

Selling price $ 110,000 ($110)

Variable expenses 60,000 ($60)

Contribution margin 50,000 ($50)

Fixed expenses 30,000

Net operating income $ 20,000

The company is considering a reduction in the selling price by $10 per unit and an increase in the advertising budget by $5,000.  This will increase sales volume by 50%.

Increase in income= unitary contribution margin* sales in units - new fixed costs

New Income= 40* (1000*1.5) - 35,000= 25,000

Increase in income= $5,000

3 0
3 years ago
Which are 3 common misconceptions users of an income statement may have?
Mama L [17]

The three most frequent misconceptions are that net income equals cash, net income excludes estimates, and net income reports all changes in value that occurred during the accounting period.

One of the three crucial financial statements used to describe a company's financial performance throughout a certain accounting period is the income statement. The balance sheet and the cash flow statement are the other two important statements. The income statement, which is often referred to as the profit and loss (P&L) statement or the statement of revenue and expense, primarily focuses on the company's revenue and expenses over a specific time period. Understanding how to study an income statement is the greatest approach to evaluate a business and choose whether or not to invest.

To learn more about income statement here

brainly.com/question/28035395

#SPJ4

3 0
2 years ago
1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Ma
marishachu [46]

Answer:

1-a. Total Contribution margin is $210,000 and Net operating income is $28,000.

1-b. Degree of Operating Leverage = 7.50

2-a. The expected percentage increase in net operating income for next year is 150%.

2-b. Expected amount of Net Operating Income is $70,000.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed costs associated with the game total $182,000 per year, and variable costs are $6 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor.

Required:

1-a. Prepare a contribution format income statement for the game last year.

1-b. Compute the degree of operating leverage.

2. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption:

a. What is the expected percentage increase in net operating income for next year?

b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Explanation of the answer is now provided as follows:

1-a. Prepare a contribution format income statement for the game last year.

The contribution format income statement for the game last year can be prepared as follows:

Magic Realm, Inc.

Contribution Income Statement

For Last Year

<u>Details                               Total ($)       Per Unit ($)   </u>

Sales                                 300,000              20

Variable cost                <u>    (90,000)   </u>          <u>  (6) </u>

Contribution margin         210,000               14

Fixed expense                <u> (182,000) </u>

Net operating income   <u>   28,000  </u>

1-b. Compute the degree of operating leverage.

Degree of Operating Leverage = Contribution Margin / Operating Income = $210,000 / $28,000 = 7.50

2-a. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: What is the expected percentage increase in net operating income for next year?

Since:

Degree of Operating Leverage = Percentage change in Operating Income / Percentage change in Sales

Substituting the relevant values, we have:

7.50 =  Percentage change in Operating Income / 20%

Percentage change in Operating Income = 7.5 * 20% = 150%

Therefore, the expected percentage increase in net operating income for next year is 150%.

2-b. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)

This can be calculated as follows:

Change in Net Operating Income = 150% * $28,000 = $42,000

Expected amount of Net Operating Income = Current Net Operating Income + Change in Net Operating Income = $28,000 + $42,000 = $70,000

6 0
3 years ago
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet
Delicious77 [7]

Answer:

$50.57 ; $175,573.6

Explanation:

The computation of the fixed and variable portions of overhead costs based on machine-hours using high low method is shown below:

Variable cost per hour = (High Overhead cost - low overhead cost) ÷ (High machine hours - low service hours)

= ($581,145 - $503,775) ÷ (8,020 hours - 6,490 hours)

= $77,370 ÷ 1,530 hours

= $50.57

Now the fixed cost equal to

= High overhead cost - (High machine hours × Variable cost per hour)

= $581,145 - (8,020 hours × $50.57)

= $581,145 - $405,571.4

= $175,573.60

3 0
3 years ago
Other questions:
  • Did the realist theory develope in reaction to idealism
    11·1 answer
  • When a competitive price-searcher market is in long-run equilibrium the firms will?
    8·1 answer
  • A labor shortage that is seen to be temporary, yet approaching quickly, would be handled best by
    11·1 answer
  • You auscultate the abdomen of a five year old gelding. what are you evaluating
    14·1 answer
  • It costs Fortune Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A for
    14·2 answers
  • What is the future value of ​$490 per year for 9 years compounded annually at 11 ​percent? The future value of ​$490 per year fo
    11·1 answer
  • Pecos Yo Company purchased a machine for $100,000 in cash on August 1 of Year 1. The machine has an estimated useful life of 10
    9·1 answer
  • You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over 5 years (60 months), and no
    9·1 answer
  • Jeff jokingly offers to sell his farm to Ron for $100. Ron accepts, and demands the farm after giving Jeff his $100. What is Jef
    13·1 answer
  • Toyota's global success in the 1990s and early 2000s was based to a large extent on a network of world-class suppliers in Japan.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!