Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Clark's Auto Parts manufactures carburetors. Each carburetor is sold for $500. In the month of June, Clark's manufactures 3,000 carburetors and sells 2,600 carburetors. Actual

Clark's Auto Parts manufactures carburetors. Each carburetor is sold for $500. In the month of June, Clark's manufactures 3,000 carburetors and sells 2,600 carburetors. Actual fixed costs are the same as the amount of fixed costs budgeted for the month. Clark's has no beginning inventory. The following information is provided for the month of June: Variable manufacturing costs $120 per unit Fixed manufacturing costs $90,000 per month Fixed Administrative expenses $30,000 per month The company also incurs a sales commission of $11 per unit. What is the operating income when using absorption costing? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) a. $880,000 b. $851,400 c. $869,400 d. $910,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Non-Accounting Students

Authors: John R. Dyson

8th Edition

273722972, 978-0273722977

More Books

Students also viewed these Accounting questions

Question

Name and summarize the goals of compensation professionals.

Answered: 1 week ago