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Stevens Corporation has provided the following data for its first year of operation: Selling price per unit...... $59.00 Manufacturing costs: Variable manufacturing cost per unit
Stevens Corporation has provided the following data for its first year of operation: Selling price per unit...... $59.00 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor ...... Variable manufacturing overhead. Fixed manufacturing overhead per year $11.00 $6.00 $4.00 $88,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold ...... $4.00 Fixed selling and administrative expense per year ......... $80,000 Units in beginning inventory Units produced during the year. Units sold during the year Units in ending inventory 0 11,000 10,000 1,000 The net operating income (loss) under variable costing in Year 1 is closest to: $147,000. $340,000. $380,000. o $212,000. $260,000. $252,000. o $180,000. O $172,000
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