Neef Corporation has provided the following data for its two most recent years of operation:         Selling price per unit $ 84 Manufacturing costs:     Variable manufacturing cost per unit produced:     Direct materials $ 12 Direct labor $ 5 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 432,000  Selling and administrative expenses:     Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 61,000    Year 1   Year 2 Units in beginning inventory 0   3,000 Units produced 12,000   9,000 Units sold 9,000   10,000 Units in ending inventory 3,000   2,0000  The net operating income (loss) under absorption costing in Year 1 is closest to:     $243,000     $137,000     $29,000     $198,000

Cornerstones of Cost Management (Cornerstones Series)
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Chapter2: Basic Cost Management Concepts
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Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Neef Corporation has provided the following data for its two most recent years of operation:

 


     
Selling price per unit $ 84
Manufacturing costs:    
Variable manufacturing cost per unit produced:    
Direct materials $ 12
Direct labor $ 5
Variable manufacturing overhead $ 4
Fixed manufacturing overhead per year $ 432,000 
Selling and administrative expenses:    
Variable selling and administrative expense per unit sold $ 5
Fixed selling and administrative expense per year $ 61,000
 


  Year 1   Year 2
Units in beginning inventory 0   3,000
Units produced 12,000   9,000
Units sold 9,000   10,000
Units in ending inventory 3,000   2,0000
 

The net operating income (loss) under absorption costing in Year 1 is closest to:
   
$243,000
   
$137,000
   
$29,000
   
$198,000
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