Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Miami, Inc., planned and actually manufactured 190,000 units of its single product in 2020, its first year of operation. Variable manufacturing cost was $17 per

image text in transcribed

Miami, Inc., planned and actually manufactured 190,000 units of its single product in 2020, its first year of operation. Variable manufacturing cost was $17 per unit produced. Variable operating (nonmanufacturing) cost was $7 per unit sold. Planned and actual fixed manufacturing costs were $380,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $370,000. Miami sold 100,000 units of product at $41 per unit. Read the requirements. Requirement 1. Miami's 2020 operating income using absorption costing is (a) $1,130,000, (b) $950,000, (c) $1,320,000, (d) $1,500,000, or (e) none of these. Show supporting calculations. Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Absorption costing Operating income Miami's 2020 operating income using absorption costing is O A. $1,130,000. OB. $950,000 OC. $1,320,000 OD. $1,500,000 O E. none of these. Requirement 2. Miami's 2020 operating income using variable costing is (a) $1,330,000, (b) $1,130,000, (c) $950,000, (d) $1,320,000, or (e) none of these. Show supporting calculations. Begin by selecting the labels used in the variable costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to enter "O" in the appropriate cell.) Variable costing Operating income Miami's 2020 Operating income usina variable costina is

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

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

5th Edition

0324233108, 978-0324233100

More Books

Students also viewed these Accounting questions

Question

1. Make sure you can see over partitions.

Answered: 1 week ago

Question

=+How can you personalize the language?

Answered: 1 week ago

Question

=+Can your message work in another locale?

Answered: 1 week ago

Question

=+Can you create an idea that spins out?

Answered: 1 week ago