The Hoops Corporation manufactures and sells hula hoops. The following data is related to sales and production of the hula hoops for last year. Selling price per unit Variable manufacturing costs per unit Variable selling and administrative expenses per unit Fixed manufacturing overhead (in total) Fixed selling and administrative expenses (in total) Units produced during the year Units sold during year Using variable costing, what is the operating income for last year? A. $312,000 B. $1,260,000 C. $469,000 D. $155,000 $8.40 $1.87 $4.45 $76,000 $81,000 530,000 150,000
The Hoops Corporation manufactures and sells hula hoops. The following data is related to sales and production of the hula hoops for last year. Selling price per unit Variable manufacturing costs per unit Variable selling and administrative expenses per unit Fixed manufacturing overhead (in total) Fixed selling and administrative expenses (in total) Units produced during the year Units sold during year Using variable costing, what is the operating income for last year? A. $312,000 B. $1,260,000 C. $469,000 D. $155,000 $8.40 $1.87 $4.45 $76,000 $81,000 530,000 150,000
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
Chapter2: Basic Managerial Accounting Concepts
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:The Hoops Corporation manufactures and sells hula hoops. The following data is related to sales and production of the hula hoops
for last year.
Selling price per unit
Variable manufacturing costs per unit
Variable selling and administrative expenses per unit
Fixed manufacturing overhead (in total)
Fixed selling and administrative expenses (in total)
Units produced during the year
Units sold during year
Using variable costing, what is the operating income for last year?
A. $312,000
B. $1,260,000
C. $469,000
D. $155,000
$8.40
$1.87
$4.45
$76,000
$81,000
530,000
150,000
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