A. The fixed overhead that is deferred in inventories totals $60,000.
Unit product cost
Year 1
Year 2
Direct materials
$12
$12
Direct labor
$5
$5
Variable manufacturing overhead
$5
$5
Fixed overhead
$48
$36
($432,000 ÷ 9,000)
($432,000 ÷ 12,000)
unit product cost
$70
$58
Fixed overhead deferred (1,000 × $48)
$48,000
Fixed overhead released
-$48,000
Fixed overhead deferred (3,000 × $36)
$108,000
Net
$48,000
$60,000.
The fixed overhead deferred in inventories amounts to $60,000.
Response:
Steve Jobs' return, new innovations, and Tim Cook assuming the COO role
Clarification:
Stock price variations are linked to the company’s success in achieving its goals and the belief that it will continue to thrive.
Initially, there was a notable rise in Apple’s stock from $27.97 to $702.10, marking a 25-fold increase.
This surge is attributed to Steve Jobs returning as CEO, which instilled confidence. Innovations such as the iPhone, iMac, iPod, and iTunes also contributed to enhanced performance and, subsequently, stock value.
However, after Tim Cook became COO, production was cut by 50%, leading to a decline in stock by 37% from its peak in September 2012 to $442.66 by the end of March 2013, down from $702.10.
