User Account

All Pages

What would be the gross profit

Assignment Help Accounting Basics
Reference no: EM132638419

Question - A company reported the following information for the production and sale of 600,000 gallons of oil:

Sales $1,500,000

Production costs:

Direct materials $575,000

Direct labor $300,000

Applied overhead (using ABC)

Overhead based on number of gallons 375,000

Overhead based on number of batches 100,000

Overhead based on number of ingredients 180,000

Total Production costs 1,530,000

Gross profit ($ 30,000)

Overhead was applied based on the following predetermined overhead rates:

$0.75 per gallon

$500 per batch

$1000 per ingredient

Required - What would be the gross profit if the company increased the selling price per gallon by $0.10?

Reference no: EM132638419

Questions Cloud

Determine the amount of change : Determine the amount of change (in millions) and percent of change in operating income from Year 1 to Year 2. Round to one decimal place
Describe strategies to address the nursing diagnoses : Include strategies to address the nursing diagnoses and identified risks of aggregate. Support your strategies with at least two journal articles.
Comparative analysis of various tools useful in policy : Comparative analysis of various tools useful in policy making. Select two tools described in chapter 7 from different categories,
What is the security equilibrium rate of return : The security has no special covenants. What is the security's equilibrium rate of return?
What would be the gross profit : Overhead based on number of gallons 375,000. What would be the gross profit if the company increased the selling price per gallon by $0.10
Obstacles to CMMI Development : Elaborate on three (3) of the obstacles that must be overcome as a business moves up the CMMI model.
Prepare general journal entry : Prepare General Journal entry, T accounts, trial balance, INCOME STATENT AND BALANCE SHEET from the following transactions
Implementing ERM in higher education environment : Discussion and case study on implementing ERM in a higher education environment.
Coors Improves Beer Flavors with Neural Networks : Why is beer flavor important to Coors' profitability? What is the objective of the neural network used at Coors?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the adjusting entry to record bad debts expense

Prepare the adjusting entry to record bad debts expense for year 2015 under the assumption that the Allowance for Doubtful Accounts has

  How much can pete deduct

Pete, a self-employed CPA, went to Los Angeles for 3 weeks. He spent 1 week analyzing his clients' investments in the Westwood area, How much can Pete deduct

  Channel corporation and the dock corporation reported

During 2014 the Channel Corporation and the Dock Corporation reported net incomes of $90,000 and $130,000, respectively.

  Prepare an estimated income statement in absorption costing

Prepare an estimated income statement in absorption costing form for November for aloe vera hand lotion, assuming that production continues during the month

  Prepare supply clubs journal entry to record july and august

Prepare Supply Club's journal entry to record July and August sales. During August, customers redeem 114,000 loyalty points on merchandise.

  How much of steve disability payments should be reported

Steve received $1,350 per month from disability (for 12 months). How much of Steve's disability payments should be reported as taxable income

  What are the fy balances in alpha company account balances

On January 1, 2017, Alpha Company purchased a significant influence shares investment in the Bravo-Zulu Company for $250,000.

  A standard cost approach

A fast-food restaurant uses a standard cost approach to aid in controlling its food cost. The following are the standard cost, sales prices, and quantities sold of each of the five items featured on the menu during a particular week:

  The bus maintenance and preparation cost above is an

lakeside tours operates a large number of tours throughout the united states. a study has indicated that some of the

  Compute the amount of net gain or loss amortization

Tom Johnson Company sponsors a defined benefit plan for its 100 employees. Compute the amount of net gain or loss amortization for 2015

  What would be the dividend liability

What would be the dividend liability at the end of 2013 on the statement of financial position

  Prepare the journal entries in the books of rules ltd

Prepare the journal entries in the books of Rules Ltd to account for the investment in Commercial Ltd under the equity method for the year ended

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd