Answer:
B. 66.67%
Explanation:
Contribution is the difference between the company's total revenue and the total variable cost. The ratio of the contribution to sales or revenue gives the contribution margin ratio.
The contribution may also be derived from the addition of the fixed cost and the operating income.
Contribution margin
= $115,000 + $54,000
= $169,000
Let the number of units to be sold to achieve targeted income be U
6U - 2U - 115,000 = 54,000
4U = 169,000
U = 42,250
Contribution margin ratio = 169000/(6 * 42,250)
= 66.67%
Answer:
The correct answer is B
Explanation:
The checks which are there on the accuracy of the statements are:
1. The corporation needed to hire or require the neutral party, which is known as the auditor in order to check the annual financial statements of the company, and also ensures that the financial statements are to prepared as per GAAP (generally accepted accounting principles). It should also offer the evidence to support the information reliability.
2. The public companies need to use a common or general set of rules and the standard format while making the reports.
3. The role of auditor is to review the financial statements and in addition Sarbanes-Oxley Act requires the CFO as well as CEO to attest personally to the accuracy of the financial statements.
Answer:
$15.3 per direct labor hour
Explanation:
Overhead costs are those costs which are incurred for the manufacturing of the product but not directly attributable to any product / service. It can be variable or fixed.
Formula for overhead costs = $65,000 + $14 per direct labor hour
Numbers of direct labor hours = 50,000 hours
Total Cost = $65,000 x ($14 x 50,000 ) = $765,000
Over head rate per direct labor hour = Total overhead cost / Numbers of direct labor hours = $765,000 / 50,000 = $15.3 per direct labor hour
