Question

Questions 26) pic below

Required information Aaker Company, which has only one product, has provided the following data concerning its most recent month of operations: $99 6,300 6,000 300 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $12 $42 $6 $6 $170,100 $24,000 What is the operating income (loss) for the month under variable costing?

Answer 1

1)Contribution Formate of Income Statement Under Variable Costing 594000 72000 252000 36000 36000 Sales (6000*99) Variable Expense Direct Material (6000*12) Direct Labour (6000*45) Variable Manufacturing Overhead (6000*6) Selling and administrative (6000*6) Total Varible Expenses Contribution Magin Fixed Expenses Fixed manufacturing Overheads Fixed Selling and Administrative Expenses Total fixed Expenses Net Operating Income 396000 198000 170100 24000 194100 3900 Answers : Net operating income Under Variable Costing = $3900