Landon Company Developed the Following Information for 2014: Selling and Administrative

question 91

Essay

Landon Company developed the following information for 2014: Selling and Administrative Expenses
$\begin{array}{lr}\quad \text { Variable } & \$ 30,000 \\\text { Fixed } & \$ 50,000 \\\text { Units in beginning inventory } & -0- \\\text { Units sold } & 26,000 \\\text { Direct materials used } & \$ 65,000 \\\text { Direct labor } & \$ 105,000 \\\text { Units produced } & 30,000 \\\text { Manufacturing overhead } & \\\quad \text { Variable } & \$ 40,000 \\\quad \text { Fixed } & \$ 90,000\end{array}$ Instructions
Answer the following questions.
(a) What would be the amount of the cost of goods sold under the absorption costing approach?
(b) What would be the cost of the ending inventory under the variable costing approach?
(c) Which approach would show the greater income for 2014 and by how much?

---

Definitions:

MBO Effectiveness

The impact or results achieved through Management by Objectives, a strategic management model that aims to improve organizational performance by defining objectives that are agreed upon by both management and employees.

MBO Failures

Instances where Management by Objectives, a strategic management model, does not achieve its desired outcomes, often due to poor implementation or unrealistic goal setting.

Productivity Gains

Increases in output per unit of input, often achieved through improvements in efficiency, technology, or methods of work.

Distributed Work

A work arrangement where tasks and responsibilities are carried out across multiple geographical locations or in a non-centralized fashion, often utilizing digital communication tools.