ttps://k-state.instructure.com/courses/51070/quizzes/137120/take DQuestion 18 1
ID: 2508834 • Letter: T
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ttps://k-state.instructure.com/courses/51070/quizzes/137120/take DQuestion 18 1 pts Donovan Company incurred the following costs while producing 500 units direct materials, $10 per unit, direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed manufacturing overhead costs $10,000: variable selling and administrative costs, $5 per unit; total fixed selling and administrative costs, $7,500. There are no beginning inventories. What is the operating income using variable costing if 450 units are sold for $100 each? o $5,000 ? ss00 O $2,500 $2,750 D | Question 19 1 pts Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed manufacturing overhead costs $10,000; variable selling and administrative costs, $5 per unit; total fixed selling and administrative costs, $7,500. There are no beginning inventories. What is the unit PRODUCT cost using throughput costing? $35 $10 O $50 $55 827 PM E /2/2018 2 10%Explanation / Answer
Ans.18 Option 4th 2750 *Calculation: Particulars Amount Sales (450 * 100) 45000 Less: Cost of goods sold Direct material (10*450) 4500 Direct labor (25*450) 11250 Variable man. Overhead (15*450) 6750 Variable S&A costs (5*450) 2250 Total variable costs 24750 Contribtution margin 20250 Less: Fixed costs Fixed man. Overhead 10000 Fixed S&A 7500 Total Fixed costs 17500 Operating Income 2750 Ans.19 Option 3rd 50 *Calculation: Direct material per unit 10 Direct labor per unit 25 Variable manufacturing overhead per unit 15 Units Product cost (total) 50 Ans.20 Option 3rd 0.80 *Calculation: Assets turnover ratio = Net sales / Average total assets 4160000 / 5200000 0.8 Ans.21 Option 3rd 20% *Calculation: ROI = Net operating income / Average total assets * 100 1040000 / 5200000 * 100 20 Ans.22 Option 2nd An ROI of 13.33% is better than an ROI of 8%. Explanation: This statement has no link with the given values Option 1st is related to return on sales Option 3rd is related to ROI. Option 4th is related to Assets turnover.
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