A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,500 units): Direct materials Direct labor $174,400 226,800 250,800 104,300 $756,300 Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $128,100 Fixed operating expenses 48,200 176,300 If 2,000 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is a. $95,651 b. $66,860 c. $77,569 d. $80,010

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,500 units): Direct materials Direct labor $174,400 226,800 250,800 104,300 $756,300 Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $128,100 Fixed operating expenses 48,200 176,300 If 2,000 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is a. $95,651 b. $66,860 c. $77,569 d. $80,010

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Description: A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (19,500 units):Direct materialsDirect laborVariable factory overheadFixed factory overheadOperating expenses:Variable operating expenses

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%
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