Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgetedproduction in both 2015 and 2016 was 8,000 units. There was no beginning inventory in 2015.The following data summarized the 2015 and 2016 operations:20152016Units soldUnits produced9,0008,0006,5008,000Costs:Variable factory overhead per unit$0.20 $0.20Fixed factory overhead$1,200 $1,200Variable marketing per unitFixed Selling and Administrative$0.30$0.30$320$320Find variable costing operating income for the year 2015.

Actual sales made for the year only has to be taken for computation for net operating income for the…

Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2015 and 2016 was 8,000 units. There was no beginning inventory in 2015. The following data summarized the 2015 and 2016 operations: 2015 2016 Units sold Units produced 6,500 9,000 8,000 8,000 Costs: Variable factory overhead per unit Fixed factory overhead Variable marketing per unit Fixed Selling and Administrative $0.20 $0.20 $1,200 $1,200 $0.30 $0.30 $320 $320 Find variable costing operating income for the year 2015.

Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2015 and 2016 was 8,000 units. There was no beginning inventory in 2015. The following data summarized the 2015 and 2016 operations: 2015 2016 Units sold Units produced 6,500 9,000 8,000 8,000 Costs: Variable factory overhead per unit Fixed factory overhead Variable marketing per unit Fixed Selling and Administrative $0.20 $0.20 $1,200 $1,200 $0.30 $0.30 $320 $320 Find variable costing operating income for the year 2015.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 6CE: Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following...

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