Question
During its first year of operations, Nishimoto Inc. incurred the following costs to produce 200,000 units of its only product: Direct materials $144,000 Direct labor
During its first year of operations, Nishimoto Inc. incurred the following costs to produce 200,000 units of its only product: Direct materials $144,000
Direct labor $108,000
Variable manufacturing overhead $216,000
Fixed manufacturing overhead $432,000
N incurred the following costs in the sale of 180,000 units of product during its first year:
Variable selling and administrative $72,000
Fixed selling and administrative $252,000 Assume that direct labor is a variable cost.
If N's variable costing net operating income for this first year is $397,800, what would its absorption costing net operating income be for this first year?
- $445,800
- $473,800
- $441,000
- $354,600
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