A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production costs (100 units): Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 69,000 Operating expenses: Variable operating expenses $8,000 Fixed operating expenses 1,000 69,000 The amount of contribution margin that would be reported on the variable costing income statement is O a. $20,200 O b. $34,200 c. $26,200 O d. $29,700 4
A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production costs (100 units): Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 69,000 Operating expenses: Variable operating expenses $8,000 Fixed operating expenses 1,000 69,000 The amount of contribution margin that would be reported on the variable costing income statement is O a. $20,200 O b. $34,200 c. $26,200 O d. $29,700 4
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 1CMA
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