Sales (6,000*27.50) | 165,000 |
Variable cost (12*6000) | 72,000 |
Contribution margin | 93,000 |
Fixed cost (60,000+10,000) | 70,000 |
Net operating income | 23,000 |
Option D
Lewes Company produced 8,000 units of inventory and sold 6,000. The company incurred the following production...
Burke Company produced 8,000 units of inventory and sold 6,000 of them. The company incurred the following production costs: Variable manufacturing cost: $6.00 per unit Fixed manufacturing overhead cost: $24,000 total Assuming the company sells its product at a price of $17 per unit, and incurred $10,000 in selling and administrative costs, what is the amount of net income under absorption costing? Select one: O A. $14,000 B. $26,000 C. $38,000 O D. $24,000
In the current year, TGIT Corp. produced 10,000 units and sold 8,000 of the units. The company incurred the following costs: Direct materials used $120,000 Direct labour cost 68,000 Variable manufacturing overhead 40,000 Fixed manufacturing overhead 60,000 Fixed selling and admin. expense 45,000 Variable selling and admin. expense 36,000 There was no beginning finished goods inventory and no beginning or ending work-in-process inventory. Use the information provided to answer the following questions: aa) Without doing any calculations, would net income...
Assume that a company produced 10,000 units and sold 8,000 units during its first year of operations. It has also provided the following information: Per Year Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Fixed selling and administrative expense Per Unit $240 $ 85 $ 60 $ 10 $ 11 $ 2 $ 250,000 If the company's unit product cost under absorption costing is $194, then what is the amount of fixed manufacturing overhead...
Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed selling and administrative expense Fixed manufacturing overhead Per Unt $200 $ 75 $ 50 $ 8 $ 8 Using variable costing, what is the net operating income for the second year of operations?...
Consider the following information: Number of units produced 2,000 units Direct materials cost : $8 per unit Direct labor cost : $12 per unit Variable manufacturing overhead $6 per unit Fixed manufacturing overhead $8,000 per unit Variable selling and administrative cost $2 per unit Fixed selling and administrative cost $6,000 Based on the information, what is the unit product cost under absorption costing system? O $26 O $30 O $28 O $32
Last year, Richmon Company produced 10,000 units and sold 6,000 units at a price of $20. Costs for last year were as follows: Direct materials $30,000 Direct labor 38,000 Variable factory overhead 8,000 Fixed factory overhead 40,000 Variable selling expense 5,000 Fixed selling expense 4,900 Fixed administrative expense 11,000 Fixed factory overhead is applied based on expected production. Last year, Richmon expected to produce 10,000 units. What is operating income for last year under absorption costing? a. $55,000 b. $39,000...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 12 Direct labor $ 3 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 324,000 Fixed selling and administrative $ 234,000 During the year, the company produced 27,000 units and sold 23,000 units. The selling price of the company’s product is $42...
Dake Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.15 Direct labor $ 3.40 Variable manufacturing overhead $ 1.95 Fixed manufacturing overhead $ 3.20 Fixed selling expense $ 0.85 Fixed administrative expense $ 0.55 Sales commissions $ 0.65 Variable administrative expense $ 0.55 If 5,000 units are produced, the total amount of direct manufacturing cost...
2. Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 12 Direct labor $ 6 Variable manufacturing overhead $ 3 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 276,000 Fixed selling and administrative $ 186,000 During the year, the company produced 23,000 units and sold 19,000 units. The selling price of the company’s product is...
Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost Per Unit $5.60 $3.10 $1.40 $4.00 $2.60 $2.20 $1.20 $0.45 9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level...