2. Haffner Company has 100 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haffner produce All units incurred $95 in variable manufacturing costs and $30 in fixed manufacturing costs. Haffner also incurred $7,300 in Selling and Administrative C for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. Total product cost per unit Absorption costing Variable costing 125 95 Calculate the operating income for the year using absorption costing. Absorption costing Net Sales Revenue 55,100 Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income Calculate the operating income for the year using variable costing. Variable costing Net Sales Revenue Variable Cost Contribution Margin Fixed Manufacturing Costs Fixed Selling and Administrative Expenses Operating Income 55,100

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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2. Haffner Company has 100 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haffner produced 190 units and sold 290 units for $190 each.
All units incurred $95 in variable manufacturing costs and $30 in fixed manufacturing costs. Haffner also incurred $7,300 in Selling and Administrative Costs, all fixed. Calculate the operating income
for the year using absorption costing and variable costing.
Calculate the total product cost per unit produced under absorption costing and under variable costing.
Total product cost per unit
Absorption
costing
Variable
costing
125
95
Calculate the operating income for the year using absorption costing.
Absorption costing
Net Sales Revenue
55,100
Cost of Goods Sold
Gross Profit
Fixed Selling and Administrative Expenses
Operating Income
Calculate the operating income for the year using variable costing.
Variable costing
Net Sales Revenue
Variable Cost
Contribution Margin
Fixed Manufacturing Costs
Fixed Selling and Administrative Expenses
Operating Income
55,100
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Transcribed Image Text:2. Haffner Company has 100 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haffner produced 190 units and sold 290 units for $190 each. All units incurred $95 in variable manufacturing costs and $30 in fixed manufacturing costs. Haffner also incurred $7,300 in Selling and Administrative Costs, all fixed. Calculate the operating income for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. Total product cost per unit Absorption costing Variable costing 125 95 Calculate the operating income for the year using absorption costing. Absorption costing Net Sales Revenue 55,100 Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income Calculate the operating income for the year using variable costing. Variable costing Net Sales Revenue Variable Cost Contribution Margin Fixed Manufacturing Costs Fixed Selling and Administrative Expenses Operating Income 55,100 MacBook Air Next
for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. \table[[,\table[[Absorption], [costing]],\table[[Variable], [costing]]], [Total product
cost per unit, 125, 95]] Calculate the operating income for the year using absorption costing. Absorption costing \table [[Net Sales Revenue], [55,100]] Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income
Calculate the operating income for the year using variable costing. \table[[Variable costing], [Net Sales Revenue], [Variable Cost], [Contribution Margin], [Fixed Manufacturing Costs], [Fixed Selling and Administrative Expenses], [Operating Income]]
Transcribed Image Text:for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. \table[[,\table[[Absorption], [costing]],\table[[Variable], [costing]]], [Total product cost per unit, 125, 95]] Calculate the operating income for the year using absorption costing. Absorption costing \table [[Net Sales Revenue], [55,100]] Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income Calculate the operating income for the year using variable costing. \table[[Variable costing], [Net Sales Revenue], [Variable Cost], [Contribution Margin], [Fixed Manufacturing Costs], [Fixed Selling and Administrative Expenses], [Operating Income]]
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