Answer:
Income statement prepared under the absorption costing method
Sales 2,600,000
Less: Cost of Goods Sold
Beginning Inventory 0
Add: Cost of Goods Produced
Materials Used 1,218,000
Labor Costs 522,000
Variable Overhead 87,000
Fixed Overhead 130,500
Less: Ending Inventory (1,957,500/4,350)×350 (157,500) 1,800,000
Gross Profit 800,000
Less: Operating Costs:
Selling and Administrative Expenses:
Variable Sales/Administrative Costs (60,000)
Fixed Sales/Administrative Costs (25,000)
Net Profit 715,000
Explanation:
Product/Manufacturing Cost under Absorption Costing = Direct Materials + Direct Labor + Variable Overheads + Fixed Overheads
Period Cost under Absorption Costing = All Non-Manufacturing Expenses
Answer: Tom would incur $2,970. in interest beyond repaying his principal of $9000.
To calculate the interest owed on the principal over a specified timeframe at a defined interest rate, we use the simple interest formula.
This Simple Interest Formula is:
where
A = interest earned on the principal
P = the principle or the amount borrowed
r = interest rate
t = the duration in years for which interest is accrued.
<pWhen we substitute the values into the formula, we have,
Answer:
The organization will incur $5,100 for each employee regarding separation fees should these exit interviews take place next year
Explanation:
Information provided in the question:
Expected reduction in staff = 15% = 0.15
Cost of conducting exit interviews = $100
Standard separation cost = $5,000
Now,
Total separation cost for each employee = Cost of exit interviews + Standard separation cost
= $100 + $5,000
= $5,100
Therefore,
The organization will incur $5,100 for each employee regarding separation fees should these exit interviews take place next year
