Rogers Rods & Reels Ltd. Rogers Rods & Reels Ltd. manufactures and sells various

Question

Rogers Rods & Reels Ltd. Rogers Rods & Reels Ltd. manufactures and sells various types of fishing equipment. At the end of 2011, Rogers had estimated for the production and sale of 15,000 bass fishing rods. Each rod has a standard calling for 1.5 pounds of direct material at a standard rate of $8.00 per pound and 15 minutes of direct labor time at a standard rate of $.18 per minute. During 2012, Rogers actually produced and sold 16,000 rods. These 16,000 rods had an actual direct materials cost of $179,200 (25,600 pounds at $7.00 per pound) and an actual direct labor cost of $44,800 (224,000 minutes at $.20 per minute). Each rod sells for $50. Refer to the Rogers Rods & Reels Ltd. information above. What is Rogers' net operating income based on a flexible budget?

a.

$579,500

b.

$564,800

c.

$576,000

d.

$590,000

Explanation / Answer

Therefore, option c is correct.

Particulars Amount ($) Sales ($15,000*$50) 800,000 Direct materials (15,000*1.5*$8) 179,200 Direct labor (15,000*15*$0.18) 44,800 Operating income 576,000

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.