Question

1)The following costs were incurred in April: Direct materials $39,400 Direct labor $34,000 Manufacturing overhead $21,600...

1)The following costs were incurred in April: Direct materials $39,400 Direct labor $34,000 Manufacturing overhead $21,600 Selling expenses $19,700 Administrative expenses $38,600 Conversion costs during the month totaled: $73,400 $61,000 $55,600 $153,300

2)Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March. Sales (6,700 units) $402,000 Variable expenses 268,000 Contribution margin 134,000 Fixed expenses 103,500 Net operating income $30,500 If the company sells 6,600 units, its net operating income should be closest to: $26,000 $28,500 $30,500 $29,979

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1.) The correct answer is option $55600

Conversation cost is sum of direct labour and overhead

Conversation cost = $34000+$21600= $55600

Conversation cost is cost of converting raw material in to product.

2.)The correct answer is $28500

Sale price per unit = $402000 ÷ 6700 units = $60

Variable cost per unit= $268000 ÷ $6700 units = $40

Contribution per unit = sales - variable cost

$60-$40= $20

Now contribution for 6600 units = 6600 units *$20= $132000

Fixed cost = $103500

Net operating income = 132000-103500=$28500

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following costs were incurred in April:   Direct materials $45,700      Direct labor $35,700      Manufacturing...
The following costs were incurred in April:   Direct materials $45,700      Direct labor $35,700      Manufacturing overhead $30,500      Selling expenses $26,800      Administrative expenses $38,000    A. Conversion costs during the month totaled? $32,300      Manufacturing overhead $26,700      Selling expenses $17,900      Administrative expenses $34,100    B. Calip Corporation, a merchandising company, reported the following results for October:   Sales $411,000      Cost of goods sold (all variable) $174,300      Total variable selling expense $26,200      Total fixed selling...
1- Costs for direct materials, direct labor and manufacturing overhead are assigned to each job. True...
1- Costs for direct materials, direct labor and manufacturing overhead are assigned to each job. True or false 2- J&A Corporation has a monthly target operating income of $35,000. Variable expenses are 30% of sales and monthly fixed expenses are $7,000. What is the monthly margin of safety in dollars if the business achieves its operating income goal? A) $60,000 B) $70,000 C) $50,000 D) $21,000 3- At Dwight Incorporated, total fixed and variable costs are $430,000 at a production...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials,...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $2 per unit, Variable overhead, $4 per unit, and Fixed overhead, $324,000. The company produced 36,000 units, and sold 28,500 units, leaving 7,500 units in inventory at year-end. Income calculated under variable costing is determined to be $400,000. How much income is reported under absorption costing? Multiple Choice $400,000 $332,500 $724,000 $467,500 $381,000 Urban Company reports the following information...
Nina Company has provided the following information: Direct material $20.00 Direct labor $17.00 Variable manufacturing overhead...
Nina Company has provided the following information: Direct material $20.00 Direct labor $17.00 Variable manufacturing overhead $15.00 Fixed manufacturing overhead $10.00 Variable administrative expense $5.00 Fixed administrative expense $2.00 Nina normally produces 8,000 units and sells these units at $100 per unit. A national discount box store has contacted the company about ordering 1,000 units that would be manufactured in a slightly different way and would save the company $3.00 per unit in direct materials. Nina has excess capacity and...
Direct Materials          $10 per unit Direct Labor                $20 per unit Variable OH costs    $10 per unit...
Direct Materials          $10 per unit Direct Labor                $20 per unit Variable OH costs    $10 per unit Fixed OH costs         $240,000 per year      In addition to the information provided above the Company also had:               Variable selling and administrative expenses    $4 per unit                Fixed selling and administrative expenses     $120,000 per year      Prepare and Income Statement for Vijay Company using the traditional absorption costing method and an income statement using the variable costing method assuming they sold 30,000...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials,...
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $3 per unit, Variable overhead, $4 per unit, and Fixed overhead, $290,000. The company produced 29,000 units, and sold 19,500 units, leaving 9,500 units in inventory at year-end. Income calculated under variable costing is determined to be $365,000. How much income is reported under absorption costing? Multiple Choice $365,000 $460,000 $329,000 $655,000 $270,000 Jeter Corporation had net income of...
A company’s first year of operation resulted in the following: Variable costs per unit: Direct materials...
A company’s first year of operation resulted in the following: Variable costs per unit: Direct materials $ 85 Fixed costs per year: Direct labor $ 420,000 Fixed manufacturing overhead $ 1,550,000 Fixed selling and administrative expenses $ 470,000 The company incurs no other expenses other than those listed above. Related to the operating data above, the company produced 24,000 units and sold 16,000 units. The selling price for the company’s product $230 per unit. The net operating income (loss) for...
Maryville, Inc., incurred the following costs during August: Raw materials used $ 32,900 Direct labor 78,600...
Maryville, Inc., incurred the following costs during August: Raw materials used $ 32,900 Direct labor 78,600 Manufacturing overhead, actual 45,300 Selling expenses 29,330 Administrative expenses 15,870 Interest expense 9,600 During the month, 5,600 units of product were manufactured and 4,700 units of product were sold. On August 1, Maryville, Inc., carried no inventories. On August 31, there were no inventories other than finished goods. Required: a. Calculate the cost of goods manufactured during August and the average cost per unit...
Maryville, Inc., incurred the following costs during August: Raw materials used $ 33,100 Direct labor 87,000...
Maryville, Inc., incurred the following costs during August: Raw materials used $ 33,100 Direct labor 87,000 Manufacturing overhead, actual 41,900 Selling expenses 24,710 Administrative expenses 22,590 Interest expense 9,800 During the month, 6,000 units of product were manufactured and 4,500 units of product were sold. On August 1, Maryville, Inc., carried no inventories. On August 31, there were no inventories other than finished goods. Required: a. Calculate the cost of goods manufactured during August and the average cost per unit...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT