Question
Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year 44,000 units Units
Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. |
Units produced this year | 44,000 units |
Units sold this year | 26,400 units |
Direct materials | $28 per unit |
Direct labor | $30 per unit |
Variable overhead | $132,000 in total |
Fixed overhead | $220,000 in total |
1. Given Advanced Company's data, and the knowledge that the product is sold for $88 per unit and operating expenses are $390,000, compute the net income under absorption costing. |
a. $88,000
b. $102,800
c. $375,760
d. $190,800
e. $322,800
2. Given Advanced Company's data, and the knowledge that the product is sold for $88 per unit and operating expenses are $390,000, compute the net income under variable costing. |
a. $88,000
b. $102,800
c. $375,760
d. $190,800
e. $398,800
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