Answer:
The options are given below:
A. Firm X
B. Firm Y
C. Same variability of operating profits
D. It would depend on tax effect on taxable income
The correct option is B. Firm Y
Explanation:
This is because firm Y has a higher operating leverage than firm X.
<u>Operating Leverage</u> refers to a cost-accounting formula that measures the degree to which a firm can increase operating income by increasing revenue. Operating leverage actually boils down to the analysis of fixed costs and variable costs, and it is highest in companies that have a high fixed operating costs in comparison with variable operating costs. What this means is that this kind of company makes use of more fixed assets. On the other hand, operating leverage is lowest in companies that have a low fixed operating costs when compared with variable operating costs.
Companies with high operating leverage are capable of making more money from each additional sale if they do not have to incur more costs to produce more sales.
Therefore, from the scenario given above, we can conclude that firm Y has a higher operating leverage than firm X, because firm X has lower fixed costs than firm Y, and a higher variable cost than firm Y as well. Hence, firm Y has the potential to make more operating profits from its business activities.
Answer:
1.the off season vegetable production can be obtained by different ways such as taking use of and utilise various agro climatic condition improve writing choosen adjustment of planting time making plastic tunnels polythene house and permanent glass house to provide control environmental conditions.
2the of seasonal vegetable are those vegetable which can be grown in rainy season using technology The main advantage of off season vegetable is that ensure food security for example tomato can be grown every time using a tunnel of greenhouse technology are genetically modified seed.
Answer:
The Journal entry and their narrations is shown below:-
Explanation:
1. Allowance for doubtful accounts Dr, $9,800
To Account receivable-Oakley Co. $2,400
To Account receivable-Brookes Co. $7,400
(Being write off is recorded)
2. Account receivable-Oakley Co. Dr, $2,400
To Allowance for doubtful accounts $2,400
(Being amount reinstated is recorded)
3. Cash Dr, $2,400
To Account receivable-Oakley Co. $2,400
(Being cash received is recorded)
Answer:
(a)
For Job G15:
Direct labor = $20,000
Overhead applied = 16,000
Overhead rate = 
= 0.8 × 100
= 80%
Overhead applied = Direct labor × 80%
= $20,000 × 80%
= $16,000
Overhead is applied on direct labor. Hence, rate is 80%.
Overhead for Job B10 = Direct labor × 80%
= $54,000 × 80%
= $43,200
Therefore,
Total overhead applied = $43,200 + 45,750 + 16,000
= $104,950
(b) Hence,
Overapplied overhead for February:
= Total overhead applied - Actual Overhead
= $104,950 - $68,500
= $36,450
