What would operating income be under lean accounting method. Mechanical Devices Electronic Devices Product A Product B

What would operating income be under lean accounting method.

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Mechanical Devices Electronic Devices Product A Product B Product C Product D Sales Direct material (based on quantity used) Direct manufacturing labor $1,400 $1,000 $1,800 $900 400 200 500 150 300 150 400 120 Manufacturing overhead (equipment lease, 180 240 400 190 supervision, production control) Allocated plant-level facility costs 100 80 160 Design and marketing costs 190 100 210 60 60 84 Allocated corporate overhead costs 30 20 40 16 Operating income $ 200 $ 210 $ 90 $280 ICS has determined that out of the $400,000 ($100,000+ $80,000+ $160,000 +$60,000) plant- level facility costs, product A occupies 22% of the plant's square footage, product B occupies 18%, product C occupies 36%, and product D occupies 14%. The remaining 10% of square footage is not being used. ICS also determined that according to its purchasing records direct material purchase costs during the period were as follows: Mechanical Devices Product A Direct material (purchases) $420 Product B $240 Product C $500 Electronic Devices Product D $180 Mechanical Devices Electronic Devices Product A Product B Product C Product D Sales Direct material (based on quantity used) Direct manufacturing labor $1,400 $1,000 $1,800 $900 400 200 500 150 300 150 400 120 Manufacturing overhead (equipment lease, 180 240 400 190 supervision, production control) Allocated plant-level facility costs 100 80 160 Design and marketing costs 190 100 210 60 60 84 Allocated corporate overhead costs 30 20 40 16 Operating income $ 200 $ 210 $ 90 $280 ICS has determined that out of the $400,000 ($100,000+ $80,000+ $160,000 +$60,000) plant- level facility costs, product A occupies 22% of the plant's square footage, product B occupies 18%, product C occupies 36%, and product D occupies 14%. The remaining 10% of square footage is not being used. ICS also determined that according to its purchasing records direct material purchase costs during the period were as follows: Mechanical Devices Product A Direct material (purchases) $420 Product B $240 Product C $500 Electronic Devices Product D $180