ACP AUDITING - RISK BASED APPROACH
10th Edition
ISBN: 9780357195079
Author: JOHNSTONE
Publisher: CENGAGE C
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Question 5.5
Carla Vista Company had $212,200 of net income in 2024 when the unit selling price was $151, the unit variable costs
were $95, and the fixed costs were $571,800. Management expects per unit data and total fixed costs to remain the same
in 2025. The president of Carla Vista Company is under pressure from stockholders to increase net income by $84,000 in
2025.
(a)
Compute the number of units sold in 2024.
Sales in 2024
units
The sales level in units required
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- Solution needed urgarrow_forwardCrystal Enterprises incurred manufacturing overhead costs of $275,000. Total overhead applied to jobs was $282,000. What was the amount of overapplied or underapplied overhead? a. $7,000 overapplied b. $6,000 overapplied c. $6,000 underapplied d. $13,000 underappliedarrow_forwardWatson Industries has a predetermined overhead rate of 65% of direct labor cost. During the month, $420,000 of factory labor costs are incurred, of which $120,000 is indirect labor. Actual overhead incurred was $250,000. What would be the amount debited to the Work in Process Inventory? Need answerarrow_forward
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