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Please explain exactly how you got the answer 10. During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000
Please explain exactly how you got the answer
10. During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its only product: Direct materials. $7 per unit Direct labor...... $3 per unit Variable manufacturing overhead. $18 per unit Fixed manufacturing overhead... $450,000 in total The company also incurred the following costs in selling 7,500 units of product during its first year: Variable selling and administrative. $2 per unit Fixed selling and administrative.. $60,000 in total Assume that direct labor is a variable cost. If Carlos' absorption costing net operating income for this first year is $108,125, what would its variable costing net operating income be for this first year? A) $110,000 B) $100,000 C) $80,000 D) $90,000Step by Step Solution
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