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Clark Shoes Inc. produces and sells a shoe for $98.00 per unit. In the first month of operation, 2,250 units were produced and 1,900 units
Clark Shoes Inc. produces and sells a shoe for $98.00 per unit. In the first month of operation, 2,250 units were produced and 1,900 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $21 .00 per unit Variable marketing costs $3 .90 per unit Fixed manufacturing costs $14 per unit Administrative expenses, all fixed $19 .50 per unit Ending inventories: Direct materials -0- WIP -0- What is the operating income using variable costing? a. $138,890 b. $63,515 c. $75,240 d. $112,290
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