Asked by Aashma Bista on Jul 08, 2024
Verified
Wasilko Corporation produces and sells one product. a.The budgeted selling price per unit is $114.Budgeted unit sales for February is 9,900 units.
B.Each unit of finished goods requires 6 pounds of raw materials.The raw materials cost $4.00 per pound.
C.The direct labor wage rate is $24.00 per hour.Each unit of finished goods requires 2.4 direct labor-hours.
D.Manufacturing overhead is entirely variable and is $9.00 per direct labor-hour.
E.The variable selling and administrative expense per unit sold is $1.60.The fixed selling and administrative expense per month is $70,000.
The estimated net operating income (loss) for February is closest to:
A) $50,000
B) $91,080
C) $21,080
D) $36,920
Direct Labor-Hours
The amount of time spent by workers directly involved in manufacturing a product or delivering a service.
Raw Materials
The basic substances in their natural, modified, or semi-processed states used as inputs for manufacturing processes.
- Evaluate and calculate the net operating income from various budget projections.
Verified Answer
IM
Irene MoralesJul 15, 2024
Final Answer :
C
Explanation :
The estimated unit product cost is computed as follows: The estimated selling and administrative expense for February is computed as follows: The estimated net operating income for February is computed as follows:
Learning Objectives
- Evaluate and calculate the net operating income from various budget projections.
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