8. A business operated at 100% of capacity during its first month, with the following results: Sales (90 units): $90,000 Production costs (100 units): Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 69,000 Operating expenses: Variable operating expenses $8,000 Fixed operating expenses 1,000 9,000 The amount of operating income that would be reported on the variable costing income statement is a.$18,000 b.$21,000 c.$18,900 d.$18,200 9. A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production costs (100 units): Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 69,000 Operating expenses: Variable operating expenses $8,000 Fixed operating expenses 1,000 9,000 The amount of operating income that would be reported on the absorption costing income statement is a.$18,900 b.$21,000 c.$27,900 d.$18,200
8. A business operated at 100% of capacity during its first month, with the following results: Sales (90 units): $90,000 Production costs (100 units): Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 69,000 Operating expenses: Variable operating expenses $8,000 Fixed operating expenses 1,000 9,000 The amount of operating income that would be reported on the variable costing income statement is a.$18,000 b.$21,000 c.$18,900 d.$18,200 9. A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production costs (100 units): Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 69,000 Operating expenses: Variable operating expenses $8,000 Fixed operating expenses 1,000 9,000 The amount of operating income that would be reported on the absorption costing income statement is a.$18,900 b.$21,000 c.$27,900 d.$18,200
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 8E: Estimated income statements, using absorption and variable costing Prior to the first month of...
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8. A business operated at 100% of capacity during its first month, with the following results:
| Sales (90 units): | $90,000 | |
| Production costs (100 units): | ||
| Direct materials | $40,000 | |
| Direct labor | 20,000 | |
| Variable factory overhead | 2,000 | |
| Fixed factory overhead | 7,000 | 69,000 |
| Operating expenses: | ||
| Variable operating expenses | $8,000 | |
| Fixed operating expenses | 1,000 | 9,000 |
The amount of operating income that would be reported on the variable costing income statement is
a.$18,000
b.$21,000
c.$18,900
d.$18,200
9. A business operated at 100% of capacity during its first month, with the following results:
| Sales (90 units) | $90,000 | |
| Production costs (100 units): | ||
| Direct materials | $40,000 | |
| Direct labor | 20,000 | |
| Variable factory overhead | 2,000 | |
| Fixed factory overhead | 7,000 | 69,000 |
| Operating expenses: | ||
| Variable operating expenses | $8,000 | |
| Fixed operating expenses | 1,000 | 9,000 |
The amount of operating income that would be reported on the absorption costing income statement is
a.$18,900
b.$21,000
c.$27,900
d.$18,200
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