Exercise 22-4 myers company uses a flexible budget for manufacturing overhead based on direct labor hours. variable manufacturing overhead costs per direct labor hour are as follows. indirect labor $1.10 indirect materials 0.60 utilities 0.40 fixed overhead costs per month are supervision $3,900, depreciation $1,200, and property taxes $500. the company believes it will normally operate in a range of 7,400–11,300 direct labor hours per month. assume that in july 2017, myers company incurs the following manufacturing overhead costs. variable costs fixed costs indirect labor $10,730 supervision $3,900 indirect materials 5,840 depreciation 1,200 utilities 3,530 property taxes 500 (a) prepare a flexible budget performance report, assuming that the company worked 10,000 direct labor hours during the month. (list variable costs before fixed costs.)

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Coop inc. owns 40% of chicken inc., both coop and chicken are corporations. chicken pays coop a dividend of $10,000 in the current year. chicken also reports financial accounting earnings of $20,000 for that year. assume coop follows the general rule of accounting for investment in chicken. what is the amount and nature of the book-tax difference to coop associated with the dividend distribution (ignoring the dividends received deduction)?