Manager prefer seeing a variable costing
Why might an operating manager prefer seeing a Variable Costing Income Statement over the traditional report?
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On January 1, Neuer Company issued $585,000, 14%, 10-year bonds at par. Interest is payable semiannually on July 1 and January 1. Prepare journal entries to record the following.
Deng Company issued $566,000 of 5-year, 8% bonds at 97 on January 1, 2011. The bonds pay interest twice a year. 1.Prepare the journal entry to record the issuance of the bonds.
During the year, the company purchased $100,000 of raw material and incurred $340,000 of direct labor costs. Other data: manufacturing overhead incurred, $450,000; sales, $1,560,000; selling and administrative expenses, $90,000; income tax rate, 3
Leoni Co. receives $277,000 when it issues a $277,000, 13%, mortgage note payable to finance the construction of a building at December 31, 2011.
O'Connell sells two products: Dynamo and Craylon. Dynamo sells for $7.50 and Craylon sells for $5.75. O'Connell estimates the 2013 sales of Dynamo and Craylon are as follows. Use this information to estimate sales revenue per quarter for O'Connell
Roo Corporation budgeted sales for the next fiscal year are $7,650,000. Roo estimates the following marketing and distribution costs as.
Murphy Company plans to produce 50,000 units in March and 60,000 units in April. Each unit requires 6 pounds of direct materials that can be purchased for $3.50 per pound.
Stratford Company distributes a lightweight lawn chair that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $180,000 annually.
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