Ashley's Accessory Shop Started the Month of June 2022 with Total

question 38

Multiple Choice

Ashley's Accessory Shop started the month of June 2022 with total assets of $210,000 and total liabilities of $120,000.During June, the business recorded $330,000 in revenues, $165,000 in expenses, and dividends of $60,000.The net income reported by Ashley's Accessory Shop for the month of June was

• A)$120,000.
• B)$150,000.
• C)$195,000.
• D)$165,000.

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Definitions:

Standard Cost Card

A detailed listing of the standard amounts of inputs and their costs that are required to produce one unit of a specific product.

Variable Cost

Costs that change in proportion to changes in the volume of output or activity.

Labor Efficiency Variance

The difference between the actual labor hours used in production and the standard labor hours expected to produce a certain quantity of goods, reflecting efficiency in labor use.

Labor Standards

The established amount of time required to perform a specific task or job, used in planning and evaluating labor efficiency.