Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following current month information is available for a company that makes one product: Direct materials per unit $ 3.00 Direct labor per unit $
The following current month information is available for a company that makes one product: Direct materials per unit $ 3.00 Direct labor per unit $ 2.00 Bariable manufacturing overhad per unity $ 2.50 Selling price per unit $ 25.00 Total fixed manufactuing overhead $ 105,000.00 Units produced 35,000 Units in ending inventory 6,000 What is the difference between operating income calculated under variable costing and operating income calculated under absorption costing? $ 105,000 $ 25,200 $ 18,000 $ 87,000
| The following current month information is available for a company that makes one product: | |||||||||
| Direct materials per unit | $ 3.00 | ||||||||
| Direct labor per unit | $ 2.00 | ||||||||
| Bariable manufacturing overhad per unity | $ 2.50 | ||||||||
| Selling price per unit | $ 25.00 | ||||||||
| Total fixed manufactuing overhead | $ 105,000.00 | ||||||||
| Units produced | 35,000 | ||||||||
| Units in ending inventory | 6,000 | ||||||||
| What is the difference between operating income calculated under variable costing and operating income | |||||||||
| calculated under absorption costing? | |||||||||
| $ 105,000 | |||||||||
| $ 25,200 | |||||||||
| $ 18,000 | |||||||||
| $ 87,000 | |||||||||
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
Government and Not-for-Profit Accounting Concepts and Practices
Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese, Daniel L. Smith
8th edition
1119495814, 1119495857, 1119495819, 9781119495819 , 978-1119495857
