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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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Answer:

$30

Explanation:

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6 0
2 years ago
Tara invests $2,500 today and another $1,500 a year from now. Her investments starting year 2 keeps increasing by $100 every yea
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$61,175

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attashe74 [19]
Gross income. they are incomes before taxes or adjustments
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3 years ago
The Consumer Price Index (CPI) is best used to determine
nlexa [21]

The answer is<u> "B) the rate of inflation".</u>


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nata0808 [166]

Answer:

The correct answer is (A)

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