Porter Company Has Provided the Following Data for the Second

question 10

Multiple Choice

Porter Company has provided the following data for the second quarter of the most recent year:
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 300,000 \\\hline \text { Fixed Manufacturing Overhead } & 55,000 \\\hline \text { Direct Labour } & 72,500 \\\hline \text { Fixed Selling Expenses } & 46,250 \\\hline \text { Variable Manufacturing Overhead } & 41,000 \\\hline \text { Variable Administrative Expenses } & 48,000 \\\hline \text { Direct Materials } & 51,500 \\\hline \text { Fixed Administrative Expenses } & 44,500 \\\hline \text { Variable Selling Expenses } & 49,750 \\\hline\end{array}$ Assume that direct labour is a variable cost and that there was no beginning or ending inventories.



-What was the gross margin(loss) for Porter Company for the second quarter?

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

Understand and calculate depreciation using different methods including straight-line, double-declining-balance, and units-of-output.

Understand the accounting treatment for exchanges of similar and dissimilar assets.

Comprehend the acquisition and capitalization of fixed assets, including costs involved and their classification.

Calculate annual depreciation and understand the impact of changes in estimates on depreciation calculation.

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Definitions:

Vertebrate Body

The structural framework of vertebrates, characterized by a backbone or spine, and includes the skeletal, muscular, and internal organ systems.

Endothermic Animals

Organisms that regulate their body temperature by generating heat internally, typically through metabolic processes.

Metabolic Rate

The rate at which an organism converts nutrients into energy and cellular building blocks to sustain its life processes.

Ectotherms

Animals that regulate their body temperature through external sources rather than internal heat production.