[The following information applies to the questions displayed below.]Assume that a pet food manufacturer is considering adding two types of pet food to its existing product line. Research had determined that good demand exists for dog food in 40-pound bags and cat food in 0.5 pound cans.The company identified the following partial list of activities, costs, and activity drivers expected for the next year: ActivityExpected CostsCost DriverMaterial handling$105,000 Number of batches madeStorage costs$820,000 Weight of finished product Dog FoodCat FoodProduction volume 100,000units 200,000unitsBatches made 200batches 150batchesHow much overhead cost will be assigned to each unit of product using activity-based costing (ABC)?
A. Dog food: $2.64; cat food: $2.64.
B. Dog food: $0.12; cat food: $3.85.
C. Dog food: $0.26; cat food: $8.60.
D. Dog food: $4.62; cat food: $4.62.
E. Dog food: $8.60; cat food: $0.33.
Answer: E
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Doggie Delights manufactures its own brand of pet toys. At the end of June, 2019 the accounting records showed the following:
(a) Prepare a schedule of cost of goods manufactured for Doggie Delights and
(b) Prepare an income statement for Doggie Delights for the year ended June 30, 2019
Suppose that a business sells 6-month subscriptions to its monthly magazine. On January 1, the company receives a total of $600 for 10 subscriptions. To record this transaction, the company debits "Cash" for $600 and credits "Unearned Subscription Revenue" for $600. As of January 31, the company has provided one month of magazines and has earned one month of revenue. What adjusting entry is
necessary at January 31? A) Unearned Subscription Revenue 600Subscription Revenue 600 B) Subscription Revenue 100Unearned Subscription Revenue 100 C) Unearned Subscription Revenue 100Subscription Revenue 100 D) Subscription Revenue 600Unearned Subscription Revenue 600
The ____ measures the percentage change in profits resulting from a percentage change in sales
A) variable cost ratio B) contribution margin ratio C) degree of operating leverage D) sales margin ratio E) break-even ratio
Explain how speaking is important in your social, educational, and professional life
What will be an ideal response?