The following information pertains to Chacon Inc. for last year:

Beginning inventory in units		5,200
Units produced		20,600
Units sold		23,500
Costs per unit:
Direct materials	$8.50
Direct labor	$3.60
Variable overhead	$1.10
Fixed overhead*	$4.35
Variable selling expenses	$2.80
Fixed selling and administrative expenses	$23,700

* Fixed overhead totals $89,610 per year.

Assume that the selling price is $29 per unit.

1. Calculate operating income using absorption costing. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement.

Score: 10/67

Chacon Inc.

Absorption-Costing Income Statement

For Last Year

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2. Calculate operating income using variable costing. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement.

Question not attempted.

Score: 0/83

Chacon Inc.

Variable-Costing Income Statement

For Last Year

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