Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Start Me Up Inc. manufactures a caffeinated energy drink that sells for $4.30 each. The results for its first year of operations appear in the
Start Me Up Inc. manufactures a caffeinated energy drink that sells for $4.30 each. The results for its first year of operations appear in the table below:
Projections | |||
Number of drinks produced | 49,000 | ||
Number of drinks sold | 46,200 | ||
Direct materials per drink | $ | 0.58 | |
Direct labor per drink | $ | 0.28 | |
Variable manufacturing overhead per drink | $ | 0.18 | |
Total fixed manufacturing overhead | $ | 30,380 | |
Total fixed selling and administrative costs | $ | 51,500 | |
Required:
1. Compute the operating income for the first year under full costing.
2. Compute the operating income for the first year under variable costing.
(For all requirements, do not round intermediate calculations.)
|
PLEASE ANSWER ASAP, THANK YOU!
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