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ASHA 777 [7]
3 years ago
9

Donovan Company incurred the following costs while producing 500 units: Direct Materials, $10 per unit; Direct Labor, $25 per un

it; variable manufacturing overhead, $15 per unit; total fixed manufacturing overhead, $10,000; variable selling and administrative costs, $5 per units; total fixed selling and administrative costs, $7,500, There are no beginning inventories. What is the operating income using absorption costing if 500 units are sold for $100
Business
1 answer:
Natali5045456 [20]3 years ago
8 0

Answer:

Net operating income= 15,000

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

<u>In this case, there is no beginning nor ending inventory. Fixed overhead is incorporated into the cost of goods sold in full.</u>

Sales= 500*100= 50,000

COGS= (10 + 25 + 15)*500 + 10,000= (35,000)

Gross profit= 25,000

Total selling and administrative costs= (5*500) + 7,500= (10,000)

Net operating income= 15,000

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Vroom Vacuums sells the Tornado vacuum cleaner. Each Tornado has a one-year warranty that covers any product defects. When custo
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Answer:

1. The obligation to transfer the vacuum cleaner in lieu of the price.

2. To honour one year warranty for any product defect that is part of the purchase contract and an inherent obligation.

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2. To honour one year warranty for any product defect that is part of the purchase contract and an inherent obligation.

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5 0
3 years ago
The expected completion time of a project is 40 weeks and the variance of its critical path activities is 9. what is the project
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The expected completion time of a project is 40 weeks and the variance of its critical path activities is 9.Project completion time is 42.0325 weeks.

Variance of its critical path activity 9 weeks.

Therefore, Standard deviation of its critical path activity = Square root ( variance) = Square root (9) = 3

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Therefore, project completion time with 75% certainty = Expected completion time of the project .

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6 0
2 years ago
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