Answer:
One of the great dangers in allocating common fixed corporate costs is that such allocations can make a product line look less profitable than it really is.
Explanation:
Therefore, care must be exercised so that a product line is not eliminated because the common fixed costs have been allocated to it such that it becomes unprofitable. This is why it is necessary to identify activity cost pools into which such fixed costs can be accumulated and from which they can be allocated to product lines. Using ABC costing approach, for instance, offers a means of escape because the system tries to allocate costs based on the level of usage or consumption of such common costs by each product line instead of using arbitrary allocation formulas.
Answer:
Ending inventory= $494
Explanation:
Giving the following information:
On January 26, the company sells 350 units. 150 units remain in ending inventory on January 31.
January 1: 320 units for $3.00
January 9: 80 units for $3.20
January 25: 100 units for $3.34
Ending inventory= 100*3.34 + 50*3.2= $494
<span>1. When John received his W2, he received several copies. Why was he sent multiple copies of this form?
The different copies are for John and each tax return he may file
2. Who sent John this W-2?
John's employer - ProperLiving Widget Engineering & Design
3. How much did John make in wages in the 2014 tax year? (assuming this was John's only job)
I do not know
4. How much did John 'take home' in net pay? (assuming this was John's only job)
I do not know
5. How much did John save in his 401(k) in the 2014 tax year?
I do not know
6. Assume your employer provides health care insurance and deducts your portion of the premiums from your paycheck with pre-tax dollars. Are your health insurance premiums federally tax deductible?
Yes
8. Select what would happen to your 1) taxable income and 2) tax liability when you are able to claim a deduction such as student loan interest?
1) lower 2) higher
9. Which are tax deductible?
Student loan payments
</span>
Answer:
$118,860
Explanation:
Gross Margin:
= Revenue - Cost of Goods Sold
= $290,000 - $100,000
= $190,000
Profit before tax:
= Gross Margin - Salaries - Insurance payment - Interest
= $190,000 - $12,000 - $3,600 - $4,600
= $169,800
Insurance payment: Only half of 2-year payment of 7,200 is relevant for this year.
Net Income:
= Profit before tax - Tax at 30%
= $169,800 - (30% × $169,800)
= $169,800 - $50,940
= $118,860
I think the correct answer is c , hope I helped
