Brush Industries reports the following information for May: Calculate the operat

Question

Brush Industries reports the following information for May:

Calculate the operating income for May under absorption costing?

$698,000

$337,000

$561,000

$586,000

Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor rate variance.

$80,550 unfavorable.

$80,550 favorable.

$69,075 favorable.

$69,075 unfavorable.

$11,475 unfavorable.

Kragle Corporation reported the following financial data for one of its divisions for the year; average invested assets of $490,000; sales of $990,000; and income of $113,000. The investment turnover is:

21.30.

49.50.

2.02.

433.60.

11.40

Brush Industries reports the following information for May:

Sales $960,000 Fixed cost of goods sold 112,000 Variable cost of goods sold 262,000 Fixed selling and administrative costs 112,000 Variable selling and administrative costs 137,000

Calculate the operating income for May under absorption costing?

$698,000

$337,000

$561,000

$586,000

Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor rate variance.

Direct labor standard (2 hrs. @ $12.75/hr.) $25.50 per finished unit Actual direct labor hours 92,900 hrs. Actual finished units produced 46,000 units Actual cost of direct labor $1,253,550

$80,550 unfavorable.

$80,550 favorable.

$69,075 favorable.

$69,075 unfavorable.

$11,475 unfavorable.

Kragle Corporation reported the following financial data for one of its divisions for the year; average invested assets of $490,000; sales of $990,000; and income of $113,000. The investment turnover is:

Explanation / Answer

Calculation of the cost of Goods sold Sales 960000 Fixed Cost of Goods sold 112000 Variable cost of goods sold 262000 Fixed Selling 112000 Variable Selling 137000 623000 Operating Income 337000 The correct option is B. $ 337000 2 Direct Labour Rate Variance ( Standard Rate- Actual Rate)* Actual Hours (12.75-1253550/92900)*92900 (12.75-13.49)*92900 69075 Unfavourable The correct option is D $ 69075 Unfavourable 3 Investment Turnover Sales/ Investment 990000*100/490000 202.0408 The correct option is C. 2.02

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