Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company’s first year of operations in which it produced 55,000 units and sold 50,000 units. Variable costs per unit: Manufacturing: Direct materials $ 23 Direct labour $ 14 Variable manufacturing overhead $ 3 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 770,000 Fixed selling and administrative expenses $ 607,000 9. What would have been the company’s variable costing net operating income (loss) if it had produced and sold 50,000 units?
Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company’s first year of operations in which it produced 55,000 units and sold 50,000 units. Variable costs per unit: Manufacturing: Direct materials $ 23 Direct labour $ 14 Variable manufacturing overhead $ 3 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 770,000 Fixed selling and administrative expenses $ 607,000 9. What would have been the company’s variable costing net operating income (loss) if it had produced and sold 50,000 units?
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company’s first year of operations in which it produced 55,000 units and sold 50,000 units. Variable costs per unit: Manufacturing: Direct materials $ 23 Direct labour $ 14 Variable manufacturing overhead $ 3 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 770,000 Fixed selling and administrative expenses $ 607,000 9. What would have been the company’s variable costing net operating income (loss) if it had produced and sold 50,000 units?
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