Question
Rainbow Enterprise, established in 2019, produces vacuum cleaners. 20,000 brooms for 2019 production and sale budgeted. There is no difference in price, efficiency and spending.
Rainbow Enterprise, established in 2019, produces vacuum cleaners. 20,000 brooms for 2019
production and sale budgeted. There is no difference in price, efficiency and spending. Realized capacity differences
the month they are sold is closed with the cost of the goods sold. The actual data for 2019 is presented below:
Unit produced 18,000
Unit sold 17,500
Sales price 425 TL
Variable costs:
Costs per unit produced
Direct material 30 TL
Direct workmanship 25 TL
Overall production cost 60 TL
Marketing costs per unit sold 45 TL
Fixed costs:
Production costs 1,100,000 TL
Management costs 965,450 TL
Marketing costs 1,366,400 TL
Requested:
1. Prepare the business's 2019 profit or loss statement using variable costing.
2. Prepare the business's 2019 profit or loss statement using full costing.
3. Explain the difference between operating profits from profit or loss statements.
4. Managers of Rainbow Business master their masters on gross profit obtained according to the full costing system
considers paying bonuses. What kind of incentive can this app create on the foremans? Business management
Is it possible to develop a better bonus plan? Briefly explain.
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