Grandin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Variable costs per unit: Direct materials$97Fixed costs per year: Direct labor$1,056,000Fixed manufacturing overhead$2,288,000Fixed selling and administrative expenses$1,435,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 44,000 units and sold 41,000 units. The company's only product is sold for $242 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $24 of direct labor cost to each unit that is produced. Which of the following statements is true
regarding the net operating income in the first year?
A. Variable costing net operating income exceeds super-variable costing net operating income by $156,000.
B. Super-variable costing net operating income exceeds variable costing net operating income by $156,000.
C. Variable costing net operating income exceeds super-variable costing net operating income by $72,000.
D. Super-variable costing net operating income exceeds variable costing net operating income by $72,000.
Answer: C
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In the report body, the introduction should tell how the rest of the report is orga-nized
Indicate whether the statement is true or false
On September 1, Year 1, West Company borrowed $10,000 from Valley Bank. West agreed to pay interest annually at the rate of 6% per year. The note issued by West carried an 18-month term. West Company has a calendar year-end. What is the amount of interest expense that will be reported on West's income statement for Year 1?
A. $200 B. $-0- C. $60 D. $150
How can businesses justify electronic surveillance?