The following information is available for the Rollin' Baby Company which produces two types of strollers,...
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The following information is available for the Rollin' Baby Company which produces two types of strollers, standard and deluxe. Standard Deluxe Total Sales volume (units) 4,000 3,500 $147,000 7,500 $243,000 Revenue $96,000 Variable Costs Direct materials 12,00017,500 29,500 16,000 24,000 40,000 20,000 28,500 48,500 $48,000 Direct labor Marketing & Sales Contribution Margin $77,000 $125,000 Fixed Costs Manufacturing Marketing & Sales $24,000 $18,000 $16,000 $67,000 Administration Profit Before Tax If the company allocates their fixed costs based on direct labor dollars, the profit before tax for the standard and deluxe product line, respectively, would be: A. $8,000/$59,000 B. $19,000/$48,000 C. $16,000/$51,000 D. $24,800/$42,200 The following information is available for the Rollin' Baby Company which produces two types of strollers, standard and deluxe. Standard Deluxe Total Sales volume (units) 4,000 3,500 $147,000 7,500 $243,000 Revenue $96,000 Variable Costs Direct materials 12,00017,500 29,500 16,000 24,000 40,000 20,000 28,500 48,500 $48,000 Direct labor Marketing & Sales Contribution Margin $77,000 $125,000 Fixed Costs Manufacturing Marketing & Sales $24,000 $18,000 $16,000 $67,000 Administration Profit Before Tax If the company allocates their fixed costs based on direct labor dollars, the profit before tax for the standard and deluxe product line, respectively, would be: A. $8,000/$59,000 B. $19,000/$48,000 C. $16,000/$51,000 D. $24,800/$42,200
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Answer OptionD 24800 42200 Reason 24000 18000 Mfg overheads Marketing Sales Administratio... View the full answer
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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