Subject: Cost management& accountingMCQ's: Moskowitz Corporation has provided the following data for its two most recent years of operation: Selling price per unit$91 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$13Direct labor$7Variable manufacturing overhead$3Fixed manufacturing overhead per year$480,000Selling and administrative expenses: Variable selling and administrative expense per unit sold$6Fixed selling and administrative expense per year$84,000 Year 1Year 2Units in beginning inventory03,000Units produced during the year12,00010,000Units sold during the year9,00010,000Units in ending inventory3,0003,000 The net operating income (loss) under variable costing in Year 2 is closest to: $80,000 $56,000 $620,000 $680,000

In the variable costing income statement, all the variable costs are deducted and resulted amount is…

Answered: Moskowitz Corporation has provided the…

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 8E: Estimated income statements, using absorption and variable costing Prior to the first month of...

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Subject: Cost management& accounting

MCQ's:

Moskowitz Corporation has provided the following data for its two most recent years of operation:


Selling price per unit	$	91

Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials	$	13
Direct labor	$	7
Variable manufacturing overhead	$	3
Fixed manufacturing overhead per year	$	480,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold	$	6
Fixed selling and administrative expense per year	$	84,000

	Year 1	Year 2
Units in beginning inventory	0	3,000
Units produced during the year	12,000	10,000
Units sold during the year	9,000	10,000
Units in ending inventory	3,000	3,000

The net operating income (loss) under variable costing in Year 2 is closest to:

		$80,000
		$56,000
		$620,000
		$680,000

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