Question
Question 23 of 40 Day Enterprises sells a single product for $37 per unit. Direct materials costs were $9 per unit, while direct labour and
Question 23 of 40
Day Enterprises sells a single product for $37 per unit. Direct materials costs were $9 per unit, while direct labour and variable manufacturing overhead costs were $8 and $3 respectively. Fixed manufacturing overhead costs amount $24,000 per month. Variable selling costs are $5 per unit. Fixed selling costs are $9,000 per month. Last month, the company produced 10,000 units and sold 6,000 units. What is the company's operating income using absorption costing?
- A. $52,600
- B. $48,600
- C. $39,000
- D. $45,400
Day Enterprises sells a single product for $37 per unit. Direct materials costs were $9 per unit, while direct labour and variable manufacturing overhead costs were $8 and $3 respectively. Fixed manufacturing overhead costs amount $24,000 per month. Variable selling costs are $5 per unit. Fixed selling costs are $9,000 per month. Last month, the company produced 10,000 units and sold 6,000 units. What is Day Enterprises operating income using variable costing?
- A. $39,000
- B. $52,600
- C. $48,600
- D. $45,400
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