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mash [69]
2 years ago
10

The principle of exceptions allows managers to focus on correcting variances between apetitor's costs and actual costs bpetitor'

s costs and standard costs c.standard costs and actual costs d.variable costs and actual costs
Business
1 answer:
tia_tia [17]2 years ago
4 0

Complete Question:

The principle of exceptions allows managers to focus on correcting variances between

Group of answer choices

a. standard costs and actual costs

b. competitor's costs and standard costs

c. variable costs and actual costs

d. competitor's costs and actual costs

Answer:

a. standard costs and actual costs

Explanation:

A principle of exception can be defined as a theory that states that, only relevant and significant deviation about an asset is brought to the knowledge of a manager for the decision-making process or consideration.

The principle of exceptions allows managers to focus on correcting variances between standard costs and actual costs.

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Rey Company’s single product sells at a price of $225 per unit. Data for its single product for its first year of operations fol
hram777 [196]

Answer:

Part 1. Prepare an income statement for the year using absorption costing

Sales ($225×29,000)                                                                         6,525,000

<u>Less Cost of Sales</u>

Opening Stock                                                                         0

Add Cost of Manufactured Goods ($95.83×29,000)    2,842,000

Less Closing Stock                                                                   0        2,842,000

Gross Profit                                                                                          3,683,000

<u>Less Expenses</u>

Selling and Administrative Expenses:

Variable ($27×29,000)                                                                           783,000

Fixed 493,000                                                                                        218,000

Net Income                                                                                          2,682,000

Part 2. Prepare an income statement for the year using variable costing

Sales ($225×29,000)                                                                         6,525,000

<u>Less Cost of Sales</u>

Opening Stock                                                                         0

Add Cost of Manufactured Goods ($81.00×29,000)    2,349,000

Less Closing Stock                                                                   0        2,349,000

Contribution                                                                                         4,176,000

<u>Less Expenses</u>

Fixed Manufacturing Costs                                                                    493,000

Selling and Administrative Expenses:

Variable ($27×29,000)                                                                           783,000

Fixed 493,000                                                                                         218,000

Net Income                                                                                          2,682,000

Explanation:

Part 1. Prepare an income statement for the year using absorption costing

Absorption Costing, also known as Full Costing includes Fixed Manufacturing as part of Product Cost.

All Non - Manufacturing Costs are then Presented as Period Costs

Product Cost Per Unit:

Direct materials                                    29.00

Direct labor                                           37.00

Variable overhead                                15.00

Fixed Overhead 430000/29000        14.83

Total Product Cost                               95.83

Part 2. Prepare an income statement for the year using variable costing

Variable Costing, also known as Marginal Costing only includes Variable Manufacturing Costs as part of Product Costs

Fixed Manufacturing and All Non - Manufacturing Costs are then Presented as Period Costs.

Product Cost Per Unit:

Direct materials                                    29.00

Direct labor                                           37.00

Variable overhead                                15.00

Total Product Cost                                81.00

5 0
3 years ago
Read 2 more answers
If the government removes a binding price floor from a market, then the price received by sellers will
Sauron [17]
It would overall decrease
6 0
3 years ago
During 2018, TRC Corporation has the following inventory transactions.
Soloha48 [4]

Answer:

Results are below.

Explanation:

Giving the following information:

Jan. 1 Beginning inventory 48 $40 $1,920

Apr. 7 Purchase 128 42 5,376

Jul. 16 Purchase 198 45 8,910

Oct. 6 Purchase 108 46 4,968

For the entire year, the company sells 427 units of inventory for $58 each.

Ending inventory units= 482 - 427= 55

<u>1)</u>

<u>Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the cost of the lasts units remaining in inventory.</u>

Ending inventory= 55*46= $2,530

COGS= 48*40 + 128*42 + 198*45 + 53*46= $18,644

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,644= $6,122

<u>2)</u>

<u>Under the LIFO (last-in, first-out) method, the ending inventory is calculated using the cost of the firsts units remaining in inventory.</u>

<u></u>

Ending inventory= 48*40 + 7*42= $2,214

COGS= 108*46 + 198*45 + 121*42= $18,960

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,960= $5,806

<u>3)</u>

<u>First, we need to calculate the weighted-average cost:</u>

weighted-average cost= (40 + 42 + 45 + 46) / 4= $43.25

Ending inventory= 55*43.25= $2,378.75

COGS= 427*43.25= $18,467.75

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,467.75= $6,298.25

6 0
2 years ago
_______________ are a category of websites that contain personal profiles and that may offer dating or other such services that
gladu [14]
Social media accounts? I'm pretty sure
8 0
3 years ago
The Whistling Straits Corporation needs to raise $72 million to finance its expansion into new markets. The company will sell ne
Alisiya [41]

Answer:

1,390,718 shares

Explanation:

Amount to be raise = $72 million

Underwriters charges = 5%

Filling Fee = $700,000

After deducting the underwriters charges the amount remains 95% of the total value. The company needs to raise exact $72 million after all charges deducted so, will take this amount as 95% of the total and gross up this value to 100%.

Total Amount to be raised = Amount including the underwrites charge + Filling charge = ( $72,000,000 / 100% - 5% ) + $700,000 = $76,489,474

Share price = $55

Numbers of share = $76,489,474 / $55 = 1,390,718 shares

8 0
3 years ago
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