Q48 Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2021 and 2022 was 11,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations: 20212022Units sold9,5007,000Units produced11,0008,000Costs: Variable factory overhead per unit$ 0.15$ 0.15Fixed factory overhead$ 2,200$ 1,600Variable marketing per unit$ 0.30$ 0.30Fixed Selling and Administrative$ 320$ 320 Full costing operating income for 2021 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.) Multiple Choice $251. $1,105. $2,150. $1,630. $1,480.

Full Costing also known as Absorption costing is a costing technique of including all fixed and…

Answered: Cap Incorporated manufactures ball…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

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Q48

Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2021 and 2022 was 11,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations:

	2021	2022
Units sold	9,500	7,000
Units produced	11,000	8,000
Costs:
Variable factory overhead per unit	$ 0.15	$ 0.15
Fixed factory overhead	$ 2,200	$ 1,600
Variable marketing per unit	$ 0.30	$ 0.30
Fixed Selling and Administrative	$ 320	$ 320

Full costing operating income for 2021 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)

Multiple Choice

$251.
$1,105.
$2,150.
$1,630.
$1,480.

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