Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jean Peck s Furniture's manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $300 after negotiations. In the

image text in transcribed
Jean Peck s Furniture's manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $300 after negotiations. In the month of January, it manufactures 3,000 tables and sells 2, 50 tables. Actual fixed costs are the same as the amount fixed costs budgeted for the month. The following information is provided for the month of January: Variable manufacturing costs $120 per unit Fixed manufacturing costs $90,000 per month Fixed Administrative expenses $25,000 per month At the end of the month Jean Peck s Furniture's has an ending inventory of finished goods of 750 units. The company also incurs a sales commission of $10 per unit. What is the gross margin when using absorption costing? $675,000 $527, 500 $270,000 $337, 500 reduces theoretical capacity for unavoidable operating interruptions. Practical capacity Theoretical capacity Master-budget capacity utilization Normal capacity utilization John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again. His wife. Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash. Sherry estimated the following costs for the two cars: The cost NOT relevant for this decision is the

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

Step: 3

blur-text-image

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

At Least Know This CPA Review 2021 Financial Accounting And Reporting

Authors: At Least Know This

1st Edition

979-8533826730

More Books

Students also viewed these Accounting questions

Question

4. Devise an interview strategy from the interviewers point of view

Answered: 1 week ago