Seattle, Inc., planned and actually manufactured 190,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $21 per unitproduced. Variable operating (nonmanufacturing) cost was $7 per unit sold. Planned and actual fixed manufacturing costs were $570,000. Planned and actual fixedoperating (nonmanufacturing) costs totaled $430,000. Seattle sold 100,000 units of product at $44 per unit.Read the requirements.Requirement 1. Seattle's 2017 operating income using absorption costing is (a) $870,000, (b) $600,000, (c) $1,030,000, (d) $1,300,000, or (e) none of these.Show supporting calculations.Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. Perform the calculations in thisstep, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.)Absorption costing Requirements1. Seattle's 2017 operating income using absorption costing is (a) $870,000, (b)$600,000, (c) $1,030,000, (d) $1,300,000, or (e) none of these. Showsupporting calculations.2. Seattle's 2017 operating income using variable costing is (a) $1,170,000, (b)$870,000, (c) $600,000, (d) $1,030,000, or (e) none of these. Show supportingcalculations.PrintDone

Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

1. Seattle's 2017 operating income using absorption costing is (a) $870,000, (b) $600,000, (c) $1,030,000, (d) $1,300,000, or (e) none of these. Show supporting calculations. 2. Seattle's 2017 operating income using variable costing is (a) $1,170,000, (b) $870,000, (c) $600,000, (d) $1,030,000, or (e) none of these. Show supporting calculations.

1. Seattle's 2017 operating income using absorption costing is (a) $870,000, (b) $600,000, (c) $1,030,000, (d) $1,300,000, or (e) none of these. Show supporting calculations. 2. Seattle's 2017 operating income using variable costing is (a) $1,170,000, (b) $870,000, (c) $600,000, (d) $1,030,000, or (e) none of these. Show supporting calculations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (nonmanufacturing) cost was $13 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $420,000. Miami sold 170,000 units of product at $41 per unit. Q. Miami’s 2017 operating income using variable costing is (a) $1,100,000, (b) $600,000, (c) $360,000, (d) $780,000, or (e) none of these. Show supporting calculations.
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