Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Last year, Walsh Company manufactured 25,000 units and sold 22,000 units. Production costs were as follows: Direct Materials - $100,000, Direct Labour $75,000, Variable Manufacturing
Last year, Walsh Company manufactured 25,000 units and sold 22,000 units. Production costs were as follows: Direct Materials - $100,000, Direct Labour $75,000, Variable Manufacturing Overhead - $50,000, Fixed Manufacturing Overhead -$75,000. Total sales were $440,000, total variable selling and administrative expenses were $110,000, and total fixed selling and administrative expenses were $45,000. There was no beginning inventory. Assume that direct labour is a variable cost. What was the operating income under variable costing? OA) $2,000. B) $9,000. C) $12,000 D) $21,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started