enter Corporation produces a single product that sells for $7.00 per unit. Standard capacity is 100,000 units per year; 100,000 units were produced and 80,000 units were sold during the year. Manufacturing costs and selling and administrative expenses are presented below. There were no variances from the standard variable costs. Any under- or overapplied overhead is written off directly at year-end as an adjustment to cost of goods sold. Fixed costs Variable costs Direct material $0 $1.50 per unit produced Direct labor 0 1.00 per unit produced Manufacturing overhead $150,000 0.50 per unit produced Selling & Administration expense 80,000 0.50 per unit sold
enter Corporation produces a single product that sells for $7.00 per unit. Standard capacity is 100,000 units per year; 100,000 units were produced and 80,000 units were sold during the year. Manufacturing costs and selling and administrative expenses are presented below. There were no variances from the standard variable costs. Any under- or overapplied overhead is written off directly at year-end as an adjustment to cost of goods sold. Fixed costs Variable costs Direct material $0 $1.50 per unit produced Direct labor 0 1.00 per unit produced Manufacturing overhead $150,000 0.50 per unit produced Selling & Administration expense 80,000 0.50 per unit sold
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...
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Carpenter Corporation
Refer to Carpenter Corporation. What is the net income under variable costing?
Carpenter Corporation produces a single product that sells for $7.00 per unit. Standard capacity is 100,000 units per year; 100,000 units were produced and 80,000 units were sold during the year.
There were no variances from the
Fixed costs | Variable costs | |
---|---|---|
Direct material | $0 | $1.50 per unit produced |
Direct labor | 0 | 1.00 per unit produced |
Manufacturing overhead | $150,000 | 0.50 per unit produced |
Selling & Administration expense | 80,000 | 0.50 per unit sold |
Refer to Carpenter Corporation. What is the net income under variable costing?
Select one:
a. $90,000
b. $50,000
c. $120,000
d. $80,000
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