A manufacturing company that produces a single product has provided the followin
ID: 2352682 • Letter: A
Question
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:SELLING PRICE.......140
UNITS IN BEGINNING INVENTORY....0
UNITS PRODUCED.....1,200
UNITS SOLD....800
UNITS IN ENDING INVENTORY....400
VARIABLE COST PER UNIT:
DIRECT MATERIALS....25
DIRECT LABOR....41
VARIABLE MANUFACTURING OVERHEAD....6
VARIABLE SELLING AND ADMIN....6
FIXED COST:
FIXED MANUFACTURING OVERHEAD....24,000
FIXED SELLING AND ADMIN....12,000
What is the net operating income (loss) for the month under variable costing?
Explanation / Answer
sales
112000
variable costs
direct material
20000
direct labor
32800
variable manufacturing OH
4800
variable selling and adm
4800
62400
contribution margin
49600
fixed costs
fixed manufacturing OH
24000
fixed selling and admin
12000
36000
net operating income
13600
answer: 13,600
sales
112000
variable costs
direct material
20000
direct labor
32800
variable manufacturing OH
4800
variable selling and adm
4800
62400
contribution margin
49600
fixed costs
fixed manufacturing OH
24000
fixed selling and admin
12000
36000
net operating income
13600
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