A business operated at 100% of capacity during its first month, with the following results: Sales (104 units) $436,800 Production costs (130 units): Direct materials $59,023 Direct labor 15,070 Variable factory overhead 26,372 Fixed factory overhead 25,115 125,580 Operating expenses: Variable operating expenses $5,199 Fixed operating expenses 4,413 9,612 The amount of operating income that would be reported on the absorption costing income statement is a.$346,816 b.$351,229 c.$436,670 d.$326,725
A business operated at 100% of capacity during its first month, with the following results: Sales (104 units) $436,800 Production costs (130 units): Direct materials $59,023 Direct labor 15,070 Variable factory overhead 26,372 Fixed factory overhead 25,115 125,580 Operating expenses: Variable operating expenses $5,199 Fixed operating expenses 4,413 9,612 The amount of operating income that would be reported on the absorption costing income statement is a.$346,816 b.$351,229 c.$436,670 d.$326,725
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...
Related questions
Question
A business operated at 100% of capacity during its first month, with the following results:
Sales (104 units) | $436,800 | |
Production costs (130 units): | ||
Direct materials | $59,023 | |
Direct labor | 15,070 | |
Variable factory overhead | 26,372 | |
Fixed factory overhead | 25,115 | 125,580 |
Operating expenses: | ||
Variable operating expenses | $5,199 | |
Fixed operating expenses | 4,413 | 9,612 |
The amount of operating income that would be reported on the absorption costing income statement is
a.$346,816
b.$351,229
c.$436,670
d.$326,725
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,