1. Danahy Corporation manufactures a single product. The following data pertain

Question

1. Danahy Corporation manufactures a single product. The following data pertain to the company's operations over the last two years:

What was the absorption costing net operating income this year?

Multiple Choice

$62,000

$74,000

$70,000

$66,000

2. Wyrich Corporation has two divisions: Blue Division and Gold Division. The following report is for the most recent operating period:

What is the company's overall net operating income if it operates at the break-even points for its two divisions?

$2,250

$0

$(73,080)

$(359,080)

Variable costing net operating income, last year $ 52,000 Variable costing net operating income, this year $ 68,000 Fixed manufacturing overhead costs released from inventory under absorption costing, last year $ 4,000 Fixed manufacturing overhead costs deferred in inventory under absorption costing, this year $ 6,000

Explanation / Answer

1. Answer is $70,000

Working:

2. Answer is $(73,080)

Working:

Variable costing net operating income , this year 68000 Fixed manufacturing overhead costs released from inventory under absorption costing, last year -4000 Fixed manufacturing overhead costs deferred in inventory under absorption costing, this year 6000 Absorption costing net operating income, this year 70000

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

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