BG

My brother lost his decent paying job in 2009. He has been underemployed since mid-2010. The job market is not that great for the field he is in. His wife, on a daily basis, berates him for not having a better paying job. She thinks there are tons of jobs out there and he is just to stupid to find one. His mother and father in law also cut him down behind his back.

My brother is a hard worker and has been dealt a bad hand. He would get out of this marriage to end the constant verbal abuse but is worried his child won't be raised properly.

Any ideas as to what he should do? Anyone been in this situation?

Oak Co. has only one product and has provided the following information:

units in beginning inventory: 0

units produced: 1200

units sold: 1000

units in ending inventory: 200

Selling price/unit: 147

Variable cost/unit

direct material: 31

direct labor: 52

variable manufacturing overhead: 10

variable selling & administrative: 7

Fixed Costs

Fixed manufacturing overhead: 31500

Fixed selling and administrative: 5200

Note: The difference in the answers should equal the fixed manufacturing overhead costs that have been deferred in ending inventory.

Question 1: Oak's Net Income under Variable Costing (contribution format) is:

A) 3300

B)10300

C)15550

D)17500

E)None of the Above

Oak's Net Income under Absorption Costing is:

A)3300

B)10300

C)15550

D)20750

E)None of the above