A business operated at 100% of capacity during its first month, with the following results: Sales (119 units) $571,200 Production costs (149 units): Direct materials $77,313 Direct labor 19,740 Variable factory overhead 34,544 Fixed factory overhead 32,899 164,496 Operating expenses: Variable operating expenses $5,200 Fixed operating expenses 4,559 9,759 The amount gross profit would be reported on the absorption costing income statement is Da. $430,065 Ob. $571,051 Ɔc. $439,824 Od. $434,624
A business operated at 100% of capacity during its first month, with the following results: Sales (119 units) $571,200 Production costs (149 units): Direct materials $77,313 Direct labor 19,740 Variable factory overhead 34,544 Fixed factory overhead 32,899 164,496 Operating expenses: Variable operating expenses $5,200 Fixed operating expenses 4,559 9,759 The amount gross profit would be reported on the absorption costing income statement is Da. $430,065 Ob. $571,051 Ɔc. $439,824 Od. $434,624
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 1CMA
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