Answer:
$186,750
Explanation:
Urgent Messenger Service,INCOME STATEMENT for the year ended
Fees Earned 724,500
Less Expenses:
Salaries expenses 393,100
Rent expenses 75,000
Utilities expense 41,200
Depreciation expenses 10,650
Miscellaneous expenses 6,650
Supplies expense 6,150
Insurance expense 5,000
Net income (724,500-537,750 ) 186,750
Answer:
c) $2,760,000
Explanation:
Computation of the amount of overhead assigned to Slime.
First step
Ordering and Receiving=Cost/Expected use of Driver×Additional Expected use of Driver
$1,200,000/2,000×1,600
=600×1,600
=$960,000
Mixing= Cost/Expected use of Driver×Additional Expected use of Driver
=1,500,000/50,000×30,000
=30×30,000
=$900,000
Testing=Cost/Expected use of Driver×Additional Expected use of Driver
= 1,350,000/1,500×1,000
=900×1,000
=$900,000
Second step
Addition of the total of :
Ordering and Receiving $960,000
Mixing $900,000
Testing $900,000
=$2,760,000
Therefore the amount of overhead assigned to Slime will be $2,760,000
Answer: The correct answer is choice b - $1,965.
Explanation: The formula for gross profit is sales minus the cost of goods sold. In this case Korey has sales of $3,250, and the cost of these items was $1,285. In order to calculate the monthly gross profit you need to subtract the cost of the goods sold from the sales. $3,250 - $1,285 = $1,965.
