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In September, Numbers Incorporated sold 40,000 units of its only product for $262,000 and incurred a total cost of $245,000, of which $27,000 was fixed costs. The flexible budget for September showed total sales of $320,000. Among variances of the period were: total variable cost flexible-budget variance, $6,000U; total flexible-budget variance, $67,000U; and, sales volume variance, in terms of contribution margin, $29,000U.   The actual amount of operating income earned in September was:   Multiple Choice   $17,000.   $40,000.   $67,000.   $84,000.   $113,000.

In September, Numbers Incorporated sold 40,000 units of its only product for $262,000 and incurred a total cost of $245,000, of which $27,000 was fixed costs. The flexible budget for September showed total sales of $320,000. Among variances of the period were: total variable cost flexible-budget variance, $6,000U; total flexible-budget variance, $67,000U; and, sales volume variance, in terms of contribution margin, $29,000U.   The actual amount of operating income earned in September was:   Multiple Choice   $17,000.   $40,000.   $67,000.   $84,000.   $113,000.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 5EB: Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The...
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In September, Numbers Incorporated sold 40,000 units of its only product for $262,000 and incurred a total cost of $245,000, of which $27,000 was fixed costs. The flexible budget for September showed total sales of $320,000. Among variances of the period were: total variable cost flexible-budget variance, $6,000U; total flexible-budget variance, $67,000U; and, sales volume variance, in terms of contribution margin, $29,000U.

 

The actual amount of operating income earned in September was:

 

Multiple Choice
  •  
    $17,000.
  •  
    $40,000.
  •  
    $67,000.
  •  
    $84,000.
  •  
    $113,000.
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