Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sandra just finished putting together the performance report for her division using standard costs within a variable costing system. Operating income is $1,600 for this

image text in transcribed

Sandra just finished putting together the performance report for her division using standard costs within a variable costing system. Operating income is $1,600 for this period, when there was a decrease in FG Inventory of 660 units. Sandra reports fixed-MOH costs of $20,400. She is happy to find there are no variable cost variances this period, and actual production equaled budgeted production of 4,080 units. Last period's inventory carried the same cost per unit as this period's production. Sandra's supervisor wants her to determine operating income under absorption costing instead, so they can compare results before finalizing external financial statements. How much income should Sandra and her supervisor report under absorption costing? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Operating income under absorption costing $ Sandra just finished putting together the performance report for her division using standard costs within a variable costing system. Operating income is $1,600 for this period, when there was a decrease in FG Inventory of 660 units. Sandra reports fixed-MOH costs of $20,400. She is happy to find there are no variable cost variances this period, and actual production equaled budgeted production of 4,080 units. Last period's inventory carried the same cost per unit as this period's production. Sandra's supervisor wants her to determine operating income under absorption costing instead, so they can compare results before finalizing external financial statements. How much income should Sandra and her supervisor report under absorption costing? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Operating income under absorption costing $

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

Students also viewed these Accounting questions

Question

Verify Equation (1.2).

Answered: 1 week ago