On December 30,a Fire Destroyed Most of the Accounting Records

question 58

Essay

On December 30,a fire destroyed most of the accounting records of the Alcorn Division,a small one-product manufacturing division that uses standard costs and flexible budgets.All variances are written off as additions to (or deductions from)income; none are pro-rated to inventories.You have the task of reconstructing the records for the year.The general manager informs you that the accountant has been experimenting with both absorption costing and variable costing.
The following information is available for the current year:
Required:
Compute the following items (ignore income tax effects).

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Definitions:

Clayton Act

A U.S. antitrust law, adopted in 1914, aimed at protecting competition by prohibiting certain actions that lead to anticompetitiveness.

Celler-Kefauver Act

A U.S. law enacted in 1950 to amend the Clayton Act, aiming to prevent anti-competitive mergers and acquisitions by prohibiting the acquisition of assets if the effect reduces competition.

Mergers

The combination of two or more companies into one entity, often to enhance market share and reduce competition.

Celler-Kefauver Act

A U.S. law enacted in 1950, aimed at preventing anti-competitive mergers and acquisitions that could create monopolies or reduce competition.