Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

having trouble with numbers 26-28 in question? A) S1,900.000 B) $2.800.000 $1,300,000 D1 31.100,000 E) $1,700,000 - Henderson Co. has fixed costs of $16,000 and

image text in transcribed having trouble with numbers 26-28
in question? A) S1,900.000 B) $2.800.000 $1,300,000 D1 31.100,000 E) $1,700,000 - Henderson Co. has fixed costs of $16,000 and a contribution margin ratio of 247 expected sales are $200,000, what is the margin of safety as a percent of sales A) 6%. 000 - 50,000 25%. C) 3396 - 200000 D) 50% sovo - 25% E) 759 700,000 25) Gladstone Co. has expected sales of $326,000 for the upcoming month and its monthly break even sales are $300,000. What is the margin of safety as a percent of sales, rounded to the nearest whole percent? 320,000 A) 996 B) 10896 -306ODO C) 52%. 2,000 D8% -= 0,079 = 8% E) 92%. 326000 26) Which of the following statements is true? A) Under variable costing, direct materials and direct labor are expensed as period expenses. B) Under variable costing, fixed manufacturing overhead is expensed as period expenses. C) Fixed manufacturing overhead costs are treated the same under both absorption costing and variable costing. D) Reported income under absorption costing is not affected by production level changes. E) Under absorption costing, fixed manufacturing overhead is expensed as period expenses. 27) Under absorption costing, which of the following statements is not true? A) Over production and inventory buildup can occur because of how managers are evaluated and rewarded. B) The fixed costs per unit decline as more units are produced. C) Variable inventory costs are treated in the same manner as they are under variable costing. D) Fixed inventory costs are treated in the same manner as they are under variable costing, E) All manufacturing costs are assigned to products. 28) When the number of units sold exceeds the number of units produced, income reported under absorption costing will be lower than variable costing. Which of the following gives the best justification of the above statement? A) Income under absorption costing is always less than income reported using variable costing, regardless of the number of units produced. B) Income under absorption costing is always more than income reported using variable costing

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Im A Auditor If You Dont Want A Sarcastic Answer Dont Ask A Stupid Question

Authors: Tim Hansen

1st Edition

B088Y3ZP2D, 979-8618443227

More Books

Students also viewed these Accounting questions