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Airida [17]
3 years ago
15

During 2019, Basler Manufacturing produced 60,000 units and sold 55,000 for $10 per unit. Variable manufacturing costs were $4 p

er unit. Annual fixed manufacturing overhead was $120,000 ($2 per unit). Variable selling and administrative costs were $1 per unit sold, and fixed selling and administrative costs were $30,000.
Required:
Prepare a variable costing income statement.
Business
1 answer:
mrs_skeptik [129]3 years ago
8 0

Answer:

Net operating income= 125,000

Explanation:

<u>First, we need to calculate the total variable cost:</u>

Total variable cost= 55,000*(4 + 1)=

<u>Variable costing income statement:</u>

Sales= 55,000*10= 550,000

Total variable cost= (275,000)

Total contribution margin= 275,000

Annual fixed manufacturing overhead= (120,000)

Fixed selling and administrative costs= (30,000)

Net operating income= 125,000

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AG Inc. made a $85,000 sale on account with the following terms: 1/15, n/30. If the company uses the net method to record sales
neonofarm [45]

Answer:

$84,150

Explanation:

Given that

Sale amount = $85,000

Terms = 1% discount is given it payment is made within 15 days and the total credit period allowed is 30 days

The computation of the amount of account receivable that should be recorded is shown below:      

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= $85,000 - $850

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Simply we deduct the discount period from the sales amount so that the accurate value could come

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3 years ago
A project professional has just been assigned manager of a project to develop a new advertising campaign for an established prod
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Answer:

<u>Establish project priorities</u>

Explanation:

<em>Remember</em>, we are told the project professional has been assigned to manage a project, therefore going by the guiding steps when defining a project, the next and second step he should take is to establish project priorities.

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4 0
3 years ago
The management of Firebolt Industries Inc. manufactures gasolineand diesel engines through two production departments, Fabricati
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Solution:

Single factory overhead amount: the amount at which plant overheads or processing overheads are assigned to goods is referred to as single plant overhead rate.

Formula to measure a single plant-wide overhead rate:

Single plant-wide overhead rate :

\frac{Total budgeted factory overhead}{ Total budgeted plant-wide allocation base}  

Different development team overhead rate: this distribution system describes the various divisions engaged in the manufacturing cycle. Factory overheads are assigned to goods on the basis of the overhead cost for each of the manufacturing units.

Formula for calculating various output department overhead:

Multiple production department overhead rate:

\frac{ Budgeted department factory overhead}{ Budgeted department factory overhead}

For calculate: single plant-wide overhead rate use direct working hours (DLH) as the allocation basis, and measure factory overhead.

Using DLH as the allocation basis to measure a single plant-wide overhead limit.

Single plant-wide overhead rate :  \frac{Total budgeted factory overhead}{ Total budgeted plant-wide allocation base}

                                                     = \frac{80,000}{10,000 DLH}

For calculate: single plant-wide overhead rate use direct working hours (DLH) as the allocation basis, and measure factory overhead.

Using DLH as the allocation basis to measure a single plant-wide overhead limit.

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