.A business operated at 100% of capacity during its first month, with the following results: Sales (112 units) $560,000 Production costs (140 units): Direct materials $70,000 Direct labor 17,500 Variable factory overhead 31,500 Fixed factory overhead 28,000 147,000 Operating expenses: Variable operating expenses $6,120 Fixed operating expenses 3,230 9,350 The amount of operating income that would be reported on the variable costing income statement is a.$427,450 b.$458,680 c.$559,860 d.$550,650
.A business operated at 100% of capacity during its first month, with the following results: Sales (112 units) $560,000 Production costs (140 units): Direct materials $70,000 Direct labor 17,500 Variable factory overhead 31,500 Fixed factory overhead 28,000 147,000 Operating expenses: Variable operating expenses $6,120 Fixed operating expenses 3,230 9,350 The amount of operating income that would be reported on the variable costing income statement is a.$427,450 b.$458,680 c.$559,860 d.$550,650
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 24E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...
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5.A business operated at 100% of capacity during its first month, with the following results:
Sales (112 units) | $560,000 | |
Production costs (140 units): | ||
Direct materials | $70,000 | |
Direct labor | 17,500 | |
Variable factory overhead | 31,500 | |
Fixed factory overhead | 28,000 | 147,000 |
Operating expenses: | ||
Variable operating expenses | $6,120 | |
Fixed operating expenses | 3,230 | 9,350 |
The amount of operating income that would be reported on the variable costing income statement is
a.$427,450
b.$458,680
c.$559,860
d.$550,650
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