Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below: Gross profit = Net sales – Cost of goods sold To Compute: The gross profit of Company.

Question

Dawson Metal Works applies manufacturing overhead to products based on standard direct labor hours. The budgeted fixed manufacturing overhead cost for the most recent month was $35,700, and the actual fixed manufacturing overhead cost for the month was $36,200. The company based its original budget on 7,500 direct labor hours. The standard hours allowed for the actual output of the month totaled 7,100 direct labor hours. a. What was the overall fixed manufacturing overhead budget variance for the month? b. What was the fixed overhead rate? c. What was the volume variance?

Answer 1

Question

Chapter 5, Problem 5.1APE

To determine

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below:

Gross profit=Net sales–Cost of goods sold

To Compute: The gross profit of Company.

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Dawson Metal Works applies manufacturing overhead to products based on standard direct labor hours. The budgeted fixed manufacturing overhead cost for the most recent month was $35,700, and the actual fixed manufacturing overhead cost for the month was $36,200. The company based its original budget on 7,500 direct labor hours. The standard hours allowed for the actual output of the month totaled 7,100 direct labor hours. a. What was the overall fixed manufacturing overhead budget variance for the month? b. What was the fixed overhead rate? c. What was the volume variance?

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Please provide the accurate solution to this financial accounting question using valid calculations.

Answer 2

Question

Chapter 5, Problem 5.1APE

To determine

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below:

Gross profit=Net sales–Cost of goods sold

To Compute: The gross profit of Company.

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Answer 3

Question

Chapter 5, Problem 5.1APE

To determine

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below:

Gross profit=Net sales–Cost of goods sold

To Compute: The gross profit of Company.

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Answer 4

Question

Chapter 5, Problem 5.1APE

To determine

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below:

Gross profit=Net sales–Cost of goods sold

To Compute: The gross profit of Company.

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Answer 5

Chapter 5, Problem 5.1APE

To determine

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below:

Gross profit=Net sales–Cost of goods sold

To Compute: The gross profit of Company.

Answer 6

Chapter 5, Problem 5.1APE

To determine

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below:

Gross profit=Net sales–Cost of goods sold

To Compute: The gross profit of Company.

Answer 7

Chapter 5, Problem 5.1APE

To determine

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below:

Gross profit=Net sales–Cost of goods sold

To Compute: The gross profit of Company.

Answer 8

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Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below: Gross profit = Net sales – Cost of goods sold To Compute: The gross profit of Company.

Solution Summary: The author explains that gross profit is the revenue after the deduction of cost of goods sold from the net sales of a business.

Videos

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below:

Gross profit=Net sales–Cost of goods sold

To Compute: The gross profit of Company.

Chapter 5 Solutions

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below: Gross profit = Net sales – Cost of goods sold To Compute: The gross profit of Company.

Solution Summary: The author explains that gross profit is the revenue after the deduction of cost of goods sold from the net sales of a business.

Videos

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below: Gross profit=Net sales–Cost of goods sold To Compute: The gross profit of Company.

Chapter 5 Solutions

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below:

Gross profit=Net sales–Cost of goods sold

To Compute: The gross profit of Company.