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Boston, Inc., planned and actually manufactured 220000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $13 per
Boston, Inc., planned and actually manufactured 220000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $13 per unit produced. Variable operating (nonmanufacturing) cost was $14 per unit sold. Planned and actual fixed manufacturing costs were $1,100,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $390,000. Boston sold 160,000 units of product at $40 per unit.
Requirements 1. Boston's 2017 operating income using absorption costing is (a) S890,000, (b) $590,000. (C) $980,000, (d) $1,280,000, or (e) none of these. Show supporting calculations. 2. Boston's 2017 operating income using variable costing is (a) $1,690,000, (b) $890,000. (C) $590,000, (d) $980,000, or (e) none of these. Show supporting calculations. Print DoneStep by Step Solution
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