5.) Farron Corporation, which has only one product, has provided the following d
ID: 2490800 • Letter: 5
Question
5.) Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price
$132
Units in beginning inventory
0
Units produced
9,200
Units sold
8,800
Units in ending inventory
400
Variable costs per unit:
Direct materials
$23
Direct labor
$65
Variable manufacturing overhead
$11
Variable selling and administrative
$15
Fixed costs:
Fixed manufacturing overhead
$138,000
Fixed selling and administrative
$9,300
What is the net operating income for the month under absorption costing?
A. $28,500
B. $11,100
C. $17,100
D. $6,000
6.) Aaker Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price
$163
Units in beginning inventory
0
Units produced
7,100
Units sold
6,800
Units in ending inventory
300
Variable costs per unit:
Direct materials
$28
Direct labor
$58
Variable manufacturing overhead
$22
Variable selling and administrative
$22
Fixed costs:
Fixed manufacturing overhead
$191,700
Fixed selling and administrative
$28,800
What is the unit product cost for the month under variable costing?
A. $130 per units
B. $157 per units
C. $135 per units
D. $108 per units
7.) Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price
$171
Units in beginning inventory
0
Units produced
7,200
Units sold
6,900
Units in ending inventory
300
Variable costs per unit:
Direct materials
$30
Direct labor
$60
Variable manufacturing overhead
$24
Variable selling and administrative
$24
Fixed costs:
Fixed manufacturing overhead
$194,400
Fixed selling and administrative
$29,400
The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
What is the unit product cost for the month under absorption costing?
A. $141 per unit
B. $114 per unit
C. $138 per unit
D. $165 per unit
5.) Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Explanation / Answer
Answer:5 C. $17,100
Unit fixed manufacturing overhead=$138000/9200=$15
Product cost=23+65+11+15=$114
Net income=Sale-COGS-Variable selling exp-Fixed selling exp
=(132*8800)-(114*8800)-(8800*15)-9300
=17100
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