Sales revenue is $725,000; allocated manufacturing overhead is $95,000; actual manufacturing overhead is $120,000; and cost of goods sold before adjustment is $380,000. What is the actual gross profit?
A) $320,000
B) $370,000
C) $345,000
D) $225,000
A
Explanation: A) $120,000 - 95,000 = $25,000 Under allocated
$725,000 - 380,000 - 25,000 = $320,000
Business
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