Question

In: Accounting

Bush Wood Farm produce a certain type of natural herb immune booster which is sold at...

Bush Wood Farm produce a certain type of natural herb immune booster which is sold at N$30 per unit:

N$ per unit
Direct materials 6.00
Direct labour 7.50
Variable overheads 2.50
Fixed overhead absorption rate 5.00
21.00

Budgeted production for the month was 5 000 units although the company managed to produce 5 800 units, selling 5 200 of them and incurring fixed overhead costs of N$27 400.

What is the absorption costing profit or loss for the month?

Select one:

a. None of all

b. N$45 400

c. N$48 400

d. N$45 200

e. N$46 800

Solutions

Expert Solution

Income Statement under absorption costing
Working Amount $
Opening Inventory a 0
Unit produced b 5800
Unit Sold c 5200
Closing Inventory d=a+b-c 600
Sales e=c*$30 $          1,56,000
Cost of good sold
Opening Inventory f $                         -  
Direct material g=b*$6 $                34,800
Direct Labour h=b*$7.5 $                43,500
Variable manufacturing OH i=b*$2.5 $                14,500
Fixed Manufacturing OH Cost j $                27,400
Cost of good manufactured k=g+h+i+j $            1,20,200
Less : Closing Inventory l=k/b*d $                12,434
Less: Cost of good sold m=f+k-l $          1,07,766
Gross Profit n=e-m $             48,234
Less : Selling expenses
Variable Selling & Admin o
Fixed marketing cost p
Net Operating Income/(loss) q=n-o-p $             48,234

Related Solutions

Indicate which cells of the immune system produce which soluble mediators.
Indicate which cells of the immune system produce which soluble mediators.
In the town of Maplewood a certain type of DVD player is sold at just two...
In the town of Maplewood a certain type of DVD player is sold at just two stores. 38% of the sales are from store A and the rest of the sales are from store B. 7% of the DVD players sold at store A are defective while 3% of the DVD players sold at store B are defective. If Kate receives one of these DVD players as a gift and finds that it is defective, what is the probability that...
Q6. Chitin is used to produce a certain type of surgical thread. a) What physical and...
Q6. Chitin is used to produce a certain type of surgical thread. a) What physical and chemical properties make it an ideal material for this purpose? b) Propose another product that chitin could be used for in everyday life. c) Why should products made of Chitin be relatively inexpensive to mass produce? Q7. Why do proteins have more diverse functional role in a cell than do carbohydrate? Q8. Why do the elements 8,16,and 34 belong to the same family on...
It is desired to produce liquefied natural gas (LNG), which we consider to be pure methane,...
It is desired to produce liquefied natural gas (LNG), which we consider to be pure methane, from that gas at 1 bar and 280 K (conditions “1” in the Linde process of the diagram). Leaving the cooler (“enfriador”) methane is at 100 bar and 210 K. The flash drum (“separador”) is adiabatic and operates at 1 bar. The recycled methane leaving the heat exchanger is at 1 bar and 200 K. The compressor can be assumed to operate reversibly and...
which type of secondary immune response attacks P. aeruginosa? and why the surface protein of P....
which type of secondary immune response attacks P. aeruginosa? and why the surface protein of P. aeruginosa is targeted by immune system?
Norman Borlaug has a wheat farm which produces 20,000 units and typically can produce them for...
Norman Borlaug has a wheat farm which produces 20,000 units and typically can produce them for $0.58 each with fixed costs of $3,000. The current market price for wheat forces them to sell their units for $0.71 each. Because of the tough market conditions, one of their competitors is looking to exit the business and instead rent their land out for $4,500 a month. Borlaug believes with the additional land they could produce and sell an extra 80,000 units each...
which type of wood do you think transport more water per unit area, pine or oak?...
which type of wood do you think transport more water per unit area, pine or oak? why?
Which type of unemployment leads to a natural rate of unemployment above zero? Multiple Choice Cyclical...
Which type of unemployment leads to a natural rate of unemployment above zero? Multiple Choice Cyclical unemployment Frictional unemployment The natural rate of unemployment is always zero. Unemployment of government workers
QUESTION 5:   A certain type of aircraft battery is known to have a lifetime, which is...
QUESTION 5:   A certain type of aircraft battery is known to have a lifetime, which is normally distributed. Suppose that an operator selects 16 batteries from that population. The average lifetime of batteries is found as 1200 days in the sample. Assuming population standard deviation is known to be 200 days, find the 98% confidence interval for the population average. (Calculate the margin of error, lower and upper limits for the 98% confidence interval)*ANSWER USING EXCEL FUNCTIONS *                                                                                         ...
A certain type of tennis ball should have a height of bounce, which is normally distributed...
A certain type of tennis ball should have a height of bounce, which is normally distributed with a mean of 140 cm. A sample of 65 tennis balls is tested and the mean height of bounce of the sample is 144 cm with a sample standard deviation of 6.3 cm. At the 5 percent level of significance, is there evidence that this type of tennis ball is not meeting the specification? Step 1 (1 mark) H0: _________________________ H1: _________________________ Step...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT