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The financial statement that highlights the components of net income is the income statement.
<h3>What is an income statement?</h3>
The income statement is a financial statement that contains the record of a company's income and expenses in a financial year. It is used for determining if a company is earning a profit or a loss.
It also contains components that explains the net income of the company.
To learn more about income statement, please check: brainly.com/question/9060570
Answer:
$6.40
Explanation:
In this case, the predetermined overhead rate is calculated by dividing total manufacturing overhead expense by the total number of direct labor hours. The overhead expense is divided in two: fixed and variable. Predetermined variable overhead expense is $2.80 and predetermined fixed overhead expense = $36,000 / 10,000 direct labor hours = $3.60.
So the total predetermined overhead rate = $2.80 + $3.60 = $6.40
Answer:
False
Explanation:
On an income statement, each item should be shown as a percentage of total sales (not net sales).
A vertical analysis uses percentages to compare different items one a financial statement using a base account. Total sales is used as the base account on an income statement, and total assets are used as the base account on a balance sheet.
