Sechrest Corporation manufactures a single product. Last year, the company\'s va
ID: 2415967 • Letter: S
Question
Sechrest Corporation manufactures a single product. Last year, the company's variable costing net operating income was $80,500. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $18,400. What was the absorption costing net operating income last year? $80,500 $62,100 $18,400 $98,900 The direct labor budge is based on the required production for the period. the beginning inventory of finished goods. The desired ending inventory of finished goods. The required materials purchases for the period. The principal difference between variable costing and absorption costing centers is whether fired manufacturing costs and fixed selling and administrative exists should he included in product costs. whether selling and administrative exists should he included in product costs whether variable manufacturing costs should be included in product costs. whether fixed manufacturing costs should be included in product costs. The records of the Dodge Corporation show the following results for the most recent year:Explanation / Answer
10 D $98900
Note:- Variable costing Net operating profit 80500
Add: Fixed manufactring overhead $18400
$98900
Increase in net operating income in absorption costing becasue of the "fixed manufacturing overhead " is assigned to the more inventory units
11 A. the required production for the period , direct labour budget is prepared after the Production budget, which is required for allocating labour hours to produce units
12 D , Whether fixed manufacturing cost should be included in the product cost , Due to this , Net opeating income is effected .
13 B $6
contribution margin = sales - variable cost
=256000 - 160000
= $96000
contribution margin per unit = $96000 / 16000 units
= $6 per unit
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