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Question - Sandy Corporation has provided the following cost data for last year when 50,000 units were produced and sold:
Raw materials $200,000
Direct labor 100,000
Manufacturing overhead 200,000
Selling and administrative expense 150,000
All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense.
If the selling price is $10 per unit, compute the net operating income (or loss) from producing and selling 120,000 units?
A. $460,000
B. $80,000
C. $85,000
D. $105,000
Blue Highway Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2007,at a cost of $120,000. Over its 4-year useful life, the bus is expected to be driven 160,000 miles.
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Question - Prepare the journal entries. Micro Machines Inc. declared a cash dividend of $1.50 per share on its 2 million outstanding shares
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