What is the net operating income for the month under variable costing?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...
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Question
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price | $ | 130 |
Units in beginning inventory | 0 | |
Units produced | 2,100 | |
Units sold | 1,900 | |
Units in ending inventory | 200 | |
Variable costs per unit: | ||
Direct materials | $ | 41 |
Direct labor | $ | 39 |
Variable manufacturing |
$ | 4 |
Variable selling and administrative expense | $ | 11 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 52,500 |
Fixed selling and administrative expense | $ | 3,800 |
What is the net operating income for the month under variable costing?
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