Dahl Manufacturing Is Making Its Operating Budget for the 4^th

question 105

Essay

Dahl Manufacturing is making its operating budget for the 4^th quarter of 2012. Sales are forecast at $60,000 in October, $65,000 in November, and $70,000 in December. Cost of goods sold it 40% of sales. Expenses are budgeted as follows:
How much is the net operating income/(loss)in October?
A)$6,200
B)$11,700
C)$7,480
D)$8,950

• A)$6,200
• B)$11,700
• C)$7,480
• D)$8,950

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Definitions:

Overhead Costs

Indirect costs not directly tied to production, such as rent, utilities, and administrative expenses, necessary for running a business.

Continuous Manufacturing

A production system where materials flow continuously through an uninterrupted production process, aiming for high efficiency and constant output.

Production Cost Report

A document detailing the total costs associated with manufacturing a product, including materials, labor, and overhead expenses.

Production Quantity

The total amount of product that a company produces within a specified period.