If Hard in Parle Company Had Net Income of $620,000

question 197

Essay

If Hard in Parle Company had net income of $620,000 in 2017 and it experienced a 19% increase in net income over 2016, what was its 2016 net income?

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Definitions:

Variable Overhead

Indirect manufacturing costs that vary with the level of production output, such as utilities and maintenance expenses.

Labour Rate Variance

The difference between the actual cost of labor and its budgeted (or standard) cost, often arising from paying different wages than anticipated.

Flexible Budget Variance

A financial performance measure that compares actual results with expected outcomes based on different levels of production or sales activity.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more accurate comparison to actual results.