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Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a price of $130
Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a price of $130 per unit.
Direct materials
$ 54
per unit
Direct labor
$ 20
per unit
Variable overhead
$ 6
per unit
Fixed overhead
$ 462,000
per year
Variable selling and administrative expenses
$ 10
per unit
Fixed selling and administrative expenses
$ 105,000
per year
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
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