2.00 points Farron Corporation, which has only one product, has provided the fol

Question

2.00 points Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations Selling price Units In beginning Inventory Units produced Units sold Units in ending Inver Variable costs per unit $100 0 8,800 8,400 400 Direct materials Direct labor Variable manufacturing overhead Varlable selling and administrative Fixed costs $15 $57 $3 $7 Fixed manuf $132,000 FIxed selling and administrative$8,500 What is the net operating income for the month under variable costing? O $10700 O $(19,300) O $16.700 O 56000

Explanation / Answer

Calculate net operating income under variable costing :

So answer is a) $10700

Sales (8400*100) 840000 Less: Variable manufacturing cost (15+57+3)*8400 -630000 Less: Variable selling and administrative (8400*7) -58800 Contribution margin 151200 Fixed manufacturing overhead -132000 Less: Fixed selling and administrative expense -8500 Net operating income 10700

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.