Reference: 06-11
Porter Company Has Provided the Following Data for the Second

question 62

Multiple Choice

Reference: 06-11
Porter Company has provided the following data for the second quarter of the most recent year: $$\begin{array} { | l | l | } \hline \text { Sales } & \$ 300,000 \\\hline \text { Fixed manufacturing overhead } & 55,000 \\\hline \text { Direct labour } & 72,500 \\\hline \text { Fixed selling expense } & 46,250 \\\hline \text { Variable manufacturing overhead } & 41,000 \\\hline \text { Variable administrative expense } & 48,000 \\\hline \text { Direct materials } & 51,500 \\\hline \text { Fixed administrative expense } & 44,500 \\\hline \text { Variable selling expense } & 49,750 \\\hline\end{array}$$ Assume that direct labour is a variable cost and that there were no beginning or ending inventories.
-The gross margin (loss) for Porter Company for the second quarter was

• A)$135,000.
• B)$131,500.
• C)$(12,500).
• D)$80,000.

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Definitions:

Savings And Loan

Financial institutions that primarily accept savings accounts and provide mortgage lending, historically focusing on residential mortgages.

Taxpayers

Individuals or entities that are obliged to pay taxes to a government authority based on their income, property, or consumption.

Speculative Demand

The demand for goods not for immediate consumption, but for investment purposes with the hope of future price appreciation.

Commercial Banks

Financial institutions that accept deposits, offer various loans, and provide other financial services, like wealth management and currency exchange.