Sales totaled $1,277,750 for the year, variable selling and administrative expenses totaled $158,710, and fixed selling and administrative expenses totaled $212,190. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:

Answers

Answer 1

Complete Question:

Krepps Corporation produces a single product. Last year, Krepps manufactured 32,150 units and sold 26,900 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $234, 695 $154, 320 $279, 705 $482, 250 Sales totaled $1,277,750 for the year, variable selling and administrative expenses totaled $158,710, and fixed selling and administrative expenses totaled $212.190. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:

Multiple Choice

O $28,350 higher than under absorption costing.

0 $28,350 lower than under absorption costing.

0 $78,750 lower than under absorption costing,

0 $78,750 higher than under absorption costing.

Answer:

Krepps Corporation

Under variable costing, the company's net operating income for the year would be:

0 $78,750 lower than under absorption costing

Explanation:

a) Data and Calculations:

Production units = 32,150 units

Sales units = 26,900 units

Production costs :

Direct materials                               $234, 695

Direct labor                                       $154, 320

Variable manufacturing overhead $279, 705

Fixed manufacturing overhead     $482, 250

Sales for the year                          $1,277,750

Variable selling and administrative expenses  $158,710

Fixed selling and administrative expenses      $212,190

Income Statement under variable costing:

Sales for the year                                               $1,277,750

Variable cost of goods sold                                $559,520

Variable selling and administrative expenses     $158,710

Total variable costs                                              $718,230

Contribution margin                                           $559,520

Fixed manufacturing overhead                         $482,250

Fixed selling and administrative expenses       $212,190

Total fixed costs                                                $694,440

Net operating loss                                             $134,920

Direct materials                               $234, 695

Direct labor                                       $154, 320

Variable manufacturing overhead $279, 705

Total variable manufacturing cost  $668,720

Production units =                            32,150

Unit costs = $20.60

Cost of goods sold = $559,520 ($20.80 * 26,900)

Income Statement under absorption costing:

Sales for the year                                               $1,277,750

Cost of goods sold                                              $963,020

Gross profit                                                           $314,730

Fixed selling and administrative expenses        $212,190

Variable selling and administrative expenses    $158,710

Total fixed costs                                                 $370,900

Net operating loss                                                $56,170

Direct materials                               $234, 695

Direct labor                                       $154, 320

Variable manufacturing overhead $279, 705

Fixed manufacturing overhead     $482, 250

Total manufacturing costs             $1,150,970

Production units = 32,150

Cost per unit = $35.80

Cost of goods sold = $963,020 ($35.80 * 26,900)

Difference = $78,750 ($134,920 - $56,170)


Related Questions

T/F If firms from country A undertake $20 billion of FDI in firms from country B in year 1, and another $20 billion in year 2, then we can say that in each of those two years, B receives annual FDI outflows of $20 billion, and A generates annual FDI inflows of $20 billion.

Answers

Answer: False

Explanation:

In both the first and second years, firms in country A undertook FDI projects of $20 billion in country B. This means that Country A had FDI outflows of $20 billion in those two years not inflows. Inflows are what happens when the FDI is coming into the country.

Country B on the other hand, was receiving money from country A. Country B therefore had FDI inflows of $20 billion in each of the two years and not outflows like Country A had.

You are holding a stock that has a beta of 1.91 and is currently in equilibrium. The required return on the stock is 25.60%, and the return on the market portfolio is 17.10%. What would be the new required return on the stock if the return on the market increased to 21.00% while the risk-free rate and beta remained unchanged

Answers

Answer:

Hence the new required return on the stock if the return on the market increased to 21.00% while the risk-free rate and beta remained unchanged is 33.05%.

Explanation:

war never ends neither does My determination

Answers

Answer:

I shall be your eternal nightmare." "War never ends, neither does my determination." "Demons! Step forward if you have a death wish."

Maria is 30 years old and has a nest egg of $25,000 that she worked hard to save
through her twenties. She would like to invest the money in order to have a down
payment for a home by the time she is 35.
How would you recommend Maria invest her money?

Answers

Answer:

Since Maria is 30 years old and has a nest egg of $ 25,000 that she worked hard to save through her twenties, and she would like to invest the money in order to have a down payment for a home by the time she is 35, I I would give her the following recommendation:

Given that the S&P 500 index fund has an average annual return of 10% to 15%, with positive returns almost guaranteed and considerably low risk, and that Maria has money that is not an excessively high amount and wants to allocate it For a purpose that implies the need for a certain investment security, I would recommend investing that sum in the aforementioned index fund.

Determine the amount to be paid in full settlement of each purchase invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paid Returns and by Seller Freight Terms Allowances a. $11,000 $260 FOB shipping point, 1/10, net 30 $1,100 b. $4,200 $101 FOB destination, 2/10, net 45

Answers

Answer:

a. The total cost is:

= ((Cost of goods - Returns) * discount factor) + Freight paid by seller

= ( (11,000 - 1,100) * (1 - 1%)) + 260

= 9,900 * 99% + 260

= $10,061

Note: When shipping is FOB Shipping point, freight is paid by buyer. Discount terms of 1/10 means that a discount of 1% is allowed if settlement is done within 100 days.

b. Total Cost is:

= ( Cost of goods - Returns) * Discount factor

= 4,200 * (1 - 2%)

= $4,116

Note: When shipping is FOB Destination, freight is not paid by buyer. 2/10 discount means 2% discount if settled in 10 days.

A company purchased property for a building site. The costs associated with the property are given below.
Purchase price = $175,000
Real estate commissions = $15,000
Legal fees = $800
Expenses of clearing the land = $2,000
Expenses to remove old building = $1,000
1. What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
2. Prepare the journal entry to record these costs.

Answers

Answer:

1. Land $193,800

Building $0

Explanation:

1. Calculation to determine what portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building

Purchase price $175,000

Real Estate commissions $15,000

Legal fees $800

Expenses of clearing the land $2,000

Expenses to remove old building $1,000

Total $193,800

Therefore the total cost of the land is $193,800 and NO cost will be allocated to the cost of the new BUILDING

2. Preparation of the journal entry to record these costs

Dr Land A/c $193,800

Cr Cash A/c $193,800

(Being land purchased for cash and the associated expenses being recorded)

The following information is available for Ethtridge Manufacturing Company for the month ending July 31:

Cost of direct materials used in production $147,700
Direct labor 177,200
Work in process inventory, July 1 66,500
Work in process inventory, July 31 90,100
Total factory overhead 81,200

Required:
Determine Ethtridge's cost of goods manufactured for the month ended July 31.

Answers

Answer:

the cost of goods manufactured is $382,500

Explanation:

The computation of the cost of goods manufactured is shown below:

Cost of direct materials used in production $147,700

Direct labor 177,200

Work in process inventory, July 1 66,500

Total factory overhead 81,200

Less:

Work in process inventory, July 31 90,100

Cost of goods manufactured $382,500

Hence, the cost of goods manufactured is $382,500

Given the following data: Beginning raw materials inventory $30,000 Materials purchased 65,000 Ending raw materials inventory 40,000 What is the amount of raw materials used? a.$5,000 b.$55,000 c.$30,000 d.$75,000

Answers

Answer:

Option "b"$55000 is correct.

Explanation:

Below is the given values:

Starting raw material = $30000

Pruchased material = $65000

Raw material at the end = 40000

Now calculate the raw material used:

Raw material used = Starting raw material  + purchases - ending raw material

Raw material used = 30000 + 65000 - 40000

Raw material used = 95000 - 4000

Raw material used = $55000

Thus option "b"$55000 is correct.

These are selected account balances on December 31, 2020. Land (location of the office building) $97000 Land (held for future use) 152000 Corporate Office Building 675000 Inventory 182000 Equipment 457000 Office Furniture 135000 Accumulated Depreciation 427000 What is the total net amount of property, plant, and equipment that will appear on the balance sheet

Answers

Answer:

$937,000

Explanation:

Calculation to determine the total net amount of property, plant, and equipment that will appear on the balance sheet

Land (location of the office building) $97000

Add Office Building 675000

Add Equipment 457000

Add Office Furniture 135000

Less Accumulated Depreciation (427000 )

Total Net Amount $937,000

Therefore the total net amount of property, plant, and equipment that will appear on the balance sheet is $937,000

non-employees are allowed in the store before the store opens and after closing time

Answers

the answer is false

Answer:

the answer is also no

Explanation:

this is because they do not work there and have no business there

Your neighbor, Bayonetta, offers you an investment opportunity which will pay a single lump sum of $2,150 four years from today. The investment requires a single payment of $1,100 today. What is the annual rate of return on this investment

Answers

Answer:

18.24%

Explanation:

Annual rate of return is used in determining the return on an investment over a 12 month or one year period.

Annual rate of return = [(future value / cost ) ^( 1/n) ] - 1

future value = 2150

present cost = 1100

n = number of years = 4

(2150 / 1100)^(1/4) - 1 = 0.1824 = 18.24%

In applying the lower of cost or market method to LIFO inventory valuation, market is defined as: A. Historical cost. B. Current replacement cost. C. Current sales price. D. FIFO. E. LIFO.

Answers

Answer:

b

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

Describe the main procedures of running a successful meeting​

Answers

The Three Rules of Running a Meeting. Set the Agenda. ...

Control the Meeting, Not the Conversation. Let Them Speak. ...

Make Meetings Essential. Do a Meeting Audit.

Peabody Company owns 90% of the outstanding capital stock of Sloane Company. During 2014 and 2015 Sloane Company sold merchandise to Peabody Company at a markup of 25% of selling price. The selling price of the merchandise sold during the two years was $42,400 and $24,000, respectively. At the end of each year, Peabody Company had in its inventory one-fourth of the goods purchased that year from Sloane Company. Sloane Company reported net income of $29,300 in 2014 and $35,300 in 2015. Required:Determine the amount of the noncontrolling interest in consolidated income to be reported for 2014 and 2015.

Answers

Answer:

Amount of noncontrolling interest in consolidated income to be reported in 2014 = $2,718

Amount of noncontrolling interest in consolidated income to be reported in 2015 = $3,410

Explanation:

Percentage of the unsold inventory = One-fourth = 1 / 4 = 0.25, or 25%

Percentage of noncontrolling interest = 100% - 90% = 10%

Unrealized profit on inventory = Selling price of the merchandise * Percentage of the unsold inventory * (Markup / (100% + Markup)) ……………. (1)

Amount of noncontrolling interest in consolidated income to be reported = (Reported net income by Sloane - Unrealized profit on inventory) * Percentage of noncontrolling interest ……………. (2)

Using equation (1), we have:

Unrealized profit on inventory in 2014 = $42,400 * 25% * (25% / (100% + 25%)) = $2,120

Unrealized profit on inventory in 2015 = $24,000 * 25% * (25% / (100% + 25%)) = $1,200

Using equation (2), we have:

Amount of noncontrolling interest in consolidated income to be reported in 2014 = ($29,300 - $2,120) * 10% = $2,718

Amount of noncontrolling interest in consolidated income to be reported in 2015 = ($35,300 - $1,200) * 10% = $3,410

The top part of Rammy's Inc.'s 2018 balance sheet is listed as follows (in millions of dollars). Current assets: Current liabilities: Cash and marketable securities $ 5 Accrued wages and taxes $ 6 Accounts receivable 15 Accounts payable 10 Inventory 95 Notes payable 50 Total $ 115 Total $ 66 What are Mars, Inc.'s current ratio, quick ratio, and cash ratio for 2018?

Answers

Answer:

Rammy's Inc or Mars, Inc

Current ratio

= 1.74

Quick ratio

= 0.3

Cash ratio

= 0.076

Explanation:

a) Data and Calculations:

Current assets:                                     Current liabilities:

Cash and marketable securities $ 5   Accrued wages and taxes $ 6

Accounts receivable                      15   Accounts payable                10

Inventory                                       95   Notes payable                     50

Total                                          $ 115   Total                                  $ 66

Current ratio = Current assets/Current liabilities

= $115/$66

= 1.74

Quick ratio = Current assets - Inventory/Current liabilities

= $20/$66

= 0.3

Cash ratio = Cash and marketable securities/Current liabilities

= $5/$66

= 0.076

A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be

Answers

Answer:

1. $25,000

2. $27,000

Explanation:

Here is the complete question :

A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $1000. Each year after that, you will receive a payment on the anniversary of the last payment that is 8% larger than the last payment. This pattern of payments will go on forever. If the interest rate is 12% per year,

a. what is today’s value of the bequest?

b. what is the value of the bequest immediately after the first payment is made?

a. Value today = value of payment /( interest rate - growth rate)

$1000 / (12% - 8%)

$1000 / (0.12 - 0.08)

$1000 / 0.04

= $25,000

b. Value today = [value of payment x ( 1 + growth rate)]  /( interest rate - growth rate)

(1000 x 1.08)  / (0.12 - 0.08)

1080 / 0.04

= 27,000

Explain why, for income tax purposes, management of Dorsey Co. would want as little of the purchase price as possible allocated to land. (Select all that apply.)

Answers

Answer:

In simple words, any company operating a business do not want to allocate much price to the land as it is non current asset and also it does not depreciate in value over time.

The depreciation amount reduces the taxable income of the year which further results in less taxable amount. Thus, resulting in higher profits for the company.

DESC
1. How much time, in seconds, does it take to complete one cycle of 60 Hz electric power?
A. 1 second
B. 1/60 second
c./3 second
D. V/120 second

Answers

Answer:

[tex]B) \ \frac{1}{60} \ second[/tex]

Explanation:

Given;

frequency, F = 60 Hz

number of cycles, n = 1

Frequency is defined as the number of complete cycles per seconds.

Mathematically, it is expressed as follows;

[tex]F = \frac{n}{t} \\\\where;\\t \ is \ the \ time \ taken \ to \ make \ the \ complete \ cycle \ (seconds)\\\\t = \frac{n}{F} \\\\t = \frac{1}{60} \ second\\\\The \ correct \ answer \ is \ \ (B) \ \frac{1}{60} \ second[/tex]

Therefore, the time taken to make a cycle of 60 Hz is ¹/₆₀ s

a.If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment of 2 percent, seasonal unemployment of 0.5 percent, and cyclical unemployment of 2 percent, what is the natural rate of unemployment

Answers

Answer: 4%

Explanation:

The natural rate of unemployment is the sum of the frictional and structural unemployment rate because these represent the unemployment that a country would still experience even if it was at full employment and the actual GDP was equal to its Potential GDP.

Natural unemployment rate = Frictional unemployment + Structural unemployment

= 2% + 2%

= 4%

Marion is a great manager and he has a number of special skills. In particular, Marion has the ability to get his subordinates to do more than would be normally expected. Which of the following terms best describes Marion?
a. Transactional leader
b. Supportive leader
c. Charismatic leader
d. People-oriented leader

Answers

Answer: c. Charismatic leader

Explanation:

Charismatic leaders are people who are capable of motivating other people by using their great interpersonal and communication skills, ability to charm others and the ease with which they can persuade people.

When they motivate others, those people are willing to do more than they normally do in relation to what they were being motivated for. In this case, Marion is therefore a charismatic leader as he is able to get employees to do more than they normally do.

a. The owner of Central Cupcake Shop finds that when she doubles the amount of flour she buys, but makes no other changes, cupcake output rises by 60%. This is an example of

Answers

Answer:

decreasing marginal returns

Explanation:

In this scenario, the owner of Central Cupcake Shop discover that when she doubles the amount of flour she buys without making additional changes, her cupcake output rises by 60%. This is an example of decreasing marginal returns.

Use the DuPont system and the following data to find return on equity.(Do not round intermediate calculations. Round your answer to 1 decimal place.)
Leverage ratio 2.8
Total asset turnover 2.5
Net profit margin 5.3 %
Dividend payout ratio 35.2 %
Return on equity %

Answers

Answer:Return on Equity= 37.1%

Explanation:

According to the DuPont Analysis System,  

Return on Equity = Leverage Ratio x Net profit margin x Total asset turnover

Return on Equity = 2.8 x 5.3% x 2.5

Return on Equity=0.371

Return on Equity= 37.1%

An individual or a firm can internalize an externality by​ ___________. A. disputing that an externality exists. B. doubling the size of the externality. C. paying the cost of the externality. D. ignoring the externality.

Answers

Answer:

C. paying the cost of the externality

Explanation:

An externality is defined as cost or benefit that is generated from the activities of a producer, but it is not financially incurred by the producer.

It can be positive or negative externality.

For example if we have a street light the effect on the society does not affect the producer cost wise so it is an externality to him.

When a producer now bears the cost of an externality he is internalizing the externality.

For example if a company polluted the environment with a byproduct of its production process this is a negative externality.

They can internalise it by cleaning up the pollutant from the society.

Marion Cosmetics decides to launch a cream with a claim that it makes skin "10 times smoother and reduces wrinkles by 90%. The claim is based on a study of 30 respondents who used products of other brands as well. However, a second study on a larger sample reveals only a mild correlation between the use of the cream and smoother skin and reduction in wrinkles.

Required:
In these circumstances, what is the most ethical approach that Marion Cosmetics can follow?

Answers

Answer:

It should report the result as it is, or improve the product to match its claim.

Explanation:

In the given situation, it is mentioned that cosmetics decided to introduce the cream with a claim that it makes the skin ten times smoother and decreased wrinkles by 90% also it is depend upon the 30 respondents

But the second study shows that there is a large correlation lies between the usage of the cream & smoother skin & decrease in wrinkles

So the most ethical approach is that it should be reported in the same way or it can be improved the product in order to match its claim

A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation pay is $42,000.
a- Journalize the adjusting entry required on January 31, the end of the first month of the current year, to record the accrued vacation pay.
b- How is the vacation pay reported on the company's balance sheet? When is this amount removed from the company's balance sheet?

Answers

Answer:

ill try but imma be wrong

Tiny Town Kennel earns service revenue by caring for the pets of customers. Tiny Town Kennel is organized as a sole proprietorship and owned by Earle Martin . During the past​ month, Tiny Town Kennel has the following​ transactions: LOADING... ​(Click the icon to view the​ transactions.) Indicate the effects of the business transactions on the accounting equation for Tiny Town Kennel. Transaction​ (a) is answered as a guide. a. Received $ 520 cash for service revenue earned.​ (Transaction (a) is answered as a​ guide.) a. Increase asset (Cash) ; Increase equity (Service Revenue) b. Paid $ 325 cash for salaries expense.

Answers

Answer:

Paid $325 cash for salaries expense ⇒ Decrease asset (Cash); Decrease in Equity (Expenses)

Assets are reduced because the money used to pay for the salaries came from cash and cash is an asset. Assets will therefore be credited.

Equity also reduces because expenses come out operating income which is part of Equity. Equity will be debited as it is debited when it decreases.

Gerardo wants to develop an Internet-based auction business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Gerardo now has to

Answers

Answer:

select a target market.

Explanation:

As we know that STP means segmenting, targeting and positioning.

Since the marget segmentation is conducted via allocating the market into different kind of segments that depend upon the same kind of needs so here the next step to choose the target market in which the suitable market segment should be selected that depend upon the evaluation process

What are the challenges that Vietnamese Businesses Face Due to Warehouse Locations in Industrial Parks

Answers

The challenges that Vietnamese businesses have to face or facing due to the warehouse locations are described below. Firstly we have to describe the warehouse locations.

The Warehouse locations in Industrial parks:

Vietnam has designated and developed several office buildings as well as regions throughout order to attract foreign investors. Vietnam's development projects are located throughout the kingdom's northwestern part.

Warehouse placement across the industrial parks presents several challenges such as:

As of now, the coordinating structure has always been in the creation stage. Supplementary time is required for coordinates.It seems to have a direct influence on either the accumulation as well as transportation, and perhaps even the expense of the action itself.

Learn more about Vietnamese businesses here:

https://brainly.com/question/11337644

The gravity model offers a logical explanation for the fact that :________
A) trade between Asia and the U.S. has grown faster than NAFTA trade.
B) trade in services has grown faster than trade in goods.
C) trade in manufactures has grown faster than in agricultural products.
D) Intra-European Union trade exceeds international trade by the European Union.
E) the U.S. trades more with Western Europe than it does with Canada.

Answers

d i think hope this helps

You are buying a laptop and there is two payment plans to consider. Payment plan A is to pay $4,900 now and payment plan B is to pay $500 now and pay $210.30 per month for 30 months. Using an interest of 24%, which payment plan do you choose

Answers

Answer: Plan A has a lower present value and should be chosen.

Explanation:

Choose the one that has the lower present value because that means that it would be cheaper.

Present value of plan A = $4,900

Present value of plan B

= $500 + Present value of $210.30 per month for 30 months

$210.30 is constant so it is an annuity.

Periodic interest rate = 24%/12 = 2%

Present value of annuity = Annuity *  ( 1 - (1 + rate)^-number of periods) / rate

= 210.30 *  ( 1 - (1 + 2%)⁻³⁰) / 2%

= $4,709.97

Present value of plan B = 500 + 4,709.97

= $5,209.97

Choose Plan A because it has a lower present value.

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