Question
Bobco, Inc. reported a beginning work in process balance of $125,000 on June 1. On June 30, the work in process balance was $108,500. For
Bobco, Inc. reported a beginning work in process balance of $125,000 on June 1. On June 30, the work in process balance was $108,500. For the month of June, cost of goods manufactured was $396,000. If prime costs were 60% of conversion costs and total manufacturing overhead for the month of June was $160,500, what was the amount of direct labor incurred for June? (Round to the nearest dollar)
a.$365,000
b.$219,000
c.$204,500
d.$58,500
e.$131,400
f.$267,500
g. $96,300
h. None of the above
Shard Co. is currently selling 153,000 units of its product at $18 per unit. The company has decided to start a new advertising strategy that would cost $44,000. As a result of the new advertising, the marketing department is estimating that there will be a 7 percent increase in sales volume. The variable cost per unit is $9. What will be the overall result of this decision?
a. An increase in sales of $52,390
b. A decrease in operating income of $44,000
c. An increase in sales of $96,390
d. An increase in operating income of $52,390
e.A decrease in operating income of $96,390
f. An increase in sales of $44,000
g. No impact on the income statement
h. None of the above
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