A business operated at 100% of capacity during its first month, with the following results: Sales (104 units) $520,000 Production costs (130 units): Direct materials $65,000 Direct labor 16,250 Variable factory overhead 29,250 Fixed factory overhead 26,000 136,500 Operating expenses: Variable operating expenses $6,270 Fixed operating expenses 3,760 10,030 What is the amount of the income from operations that would be reported on the variable costing income statement?
A business operated at 100% of capacity during its first month, with the following results: Sales (104 units) $520,000 Production costs (130 units): Direct materials $65,000 Direct labor 16,250 Variable factory overhead 29,250 Fixed factory overhead 26,000 136,500 Operating expenses: Variable operating expenses $6,270 Fixed operating expenses 3,760 10,030 What is the amount of the income from operations that would be reported on the variable costing income statement?
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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A business operated at 100% of capacity during its first month, with the following results:
Sales (104 units) | $520,000 | |
Production costs (130 units): | ||
Direct materials | $65,000 | |
Direct labor | 16,250 | |
Variable factory overhead | 29,250 | |
Fixed factory overhead | 26,000 | 136,500 |
Operating expenses: | ||
Variable operating expenses | $6,270 | |
Fixed operating expenses | 3,760 | 10,030 |
What is the amount of the income from operations that would be reported on the variable costing income statement?
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