At the end of the year, overhead applied was $35,000,000. Actual overhead was $34,300,000. Closing over/under applied overhead into cost of goods sold would cause net income to: O Decrease by $300,000 O Remain constant O Increase by $700,000 O Decrease by $700,000

At the end of the year, overhead applied was $35,000,000. Actual overhead was $34,300,000. Closing over/under applied overhead into cost of goods sold would cause net income to: O Decrease by $300,000 O Remain constant O Increase by $700,000 O Decrease by $700,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Assume that projected revenue for 2018 is 1,058,949. Also assume the following projected 2018 costs in each of the cost categories from question one: Packaged (Cans & Bottles) $140,847 Kegs $65,238 Shrinkage/WIP Loss $42,000 Contract Labor $9,000 Direct Labor $240,000 Freight $18,000 Consumer Advertising $30,000 Trade Promotion $30,000 Sales Promotion $18,000 Salaries & Benefits $180,000 Given these costs, compute Shannon’s projected contribution in dollars.
A business plans for fixed production overheads of £200,000 and annual production of 400,000 units in its financial year. A fire at the factory results in production being only 300,000 units, with no saving in fixed production overheads. Based on the information above, what amount of unallocated overheads should be expensed in the Income Statement this year? Select one: a. £0 b. £12,500 c. £200,000 d.None of the other answers shown e. £50,000 f. £150,000
For the current year ended March 31, Kadel Company expects fixed costs of $365,400, a unit variable cost of $43, and a unit selling price of $64. a. Compute the anticipated break-even sales (units).fill in the blank 1 of 1 units b. Compute the sales (units) required to realize operating income of $84,000.fill in the blank 1 of 1 units
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Swisher, Incorporated reports the following annual cost data for its single product: Normal production level Direct materials Direct labor Variable overhead Fixed overhead Multiple Choice $60,000 decrease This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's income increase or decrease under variable costing? $90,000 decrease $90,000 Increase. 30,000 units 6.40 per unit 3.93 per unit 5.80 per unit $150,000 in total $ $60,000 increase. There is no change in income.
The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $24.00 $10.00 Unit operating expenses of the period 8.00 3.00 The effect on operating income if variable costing is used rather than absorption costing would be a a.$50,000 increase b.$50,000 decrease c.$65,000 decrease d.$65,000 increase
At the end of the accounting period Tubman, Inc. reports operating income of $50,000, a contribution margin of $15, and a fixed overhead rate of $6 per unit. Under variable costing, if this company produces 100 more units of inventory, then operating income: a. will increase by $1,500 b. will decrease by $1,500 c. will increase by $900 d. will decrease by $900 e. will increase by $600 f. will decrease by $600 g. will not be affected h. Cannot be determined
et A company reports the following per unit cost information for this year: Direct materials, $3.90, Direct labor, $5.30, Variable overhead costs, $2.50, Variable selling and administrative costs, $2.90, Fixed costs are $67,000 per year. The company sold 6,700 units for $37 per unit For next year, the company will use a new material, which will reduce direct materials cost to $3.60 per unit. The company will also increase its selling price to $38 per unit, which will decrease unit sales volume to 6,200 units. Fixed costs per year, direct labor cost per unit, variable overhead costs per unit, and variable selling and administrative expenses per unit will not change. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the contribution margin per unit when using the new material, increasing the selling price, and decreasing unit sales. Note: Round "per unit answers" to 2 decimal places. Contribution margin per unit Sales price per unit Variable…
Sales price per unit. 51.00 Fixed costs (per month): Selling, general, and administrative (SG&A) 900,000 Manufacturing overhead 1,800,000 Variable costs (per unit): Direct labor 8.00 Direct materials 13.00 Manufacturing overhead 9.00 4.00 SG&A Number of units produced per month. 300,000 units Required: Compute the amounts for each of the following assuming that both production levels are within the relevant range. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 300,000 units 400,000 units a. Prime cost per unit. b. Contribution margin per unit. C. Gross margin per unit. d. Conversion cost per unit. e. Variable cost per unit. f. Full absorption cost per unit. g. Variable production cost per unit. h. Full cost per unit. $
1. For The period just ended, the gross margin of Robin Company was P 3,840,000, the cost of goods manufactured was P 13,6000,000; the work in process inventory increased by P400,000 and finished goods ending inventories increased by P400,000 during the year, but the materials inventories decreased by P 120,000. Assuming that factory overhead is applied to production at 150% of direct labor cost but only 45% of material cost, how much is the total factory overhead applied to production? 2. A machine shop manufactures a stainless-steel part that is used in an assembled product. Materials charged to a particular job amounted to P6,000. At the point of final inspection, it was discovered that the material used was inferior to the specifications required by the engineering department; therefore, all units had to be scrapped. The revenue received for scrap is to be treated as a reduction in manufacturing cost but cannot be identified with a specific job. A firm price is not determinable for…
These following details were supplied by Eigen Manufacturing Corp. over the previous month: Sales $40,000 Variable costs 14,000 Fixed costs 10,000 Operating income $16,000 What is the anticipated operating income if sales drop to 50% in the upcoming month? A. $6,000 B. $15,000 C. $3,000 D. $16,000
Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies $ 40,000 Employee costs 2,900,000 Total overhead 1,300,000 Production was 25,000 billable hours. Fixed overhead was $700,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 5 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. b. Determine the total costs per billable hour for year 1 and year 2.

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