4 During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials Direct labor Variable overhead 3 Fixed overhead $6 per unit $4 per unit $240,000 $5 per unit per year The company produced 30,000 units, and sold 20,000 units, leaving 10,000 units in inventory at year-end. Income calculated under variable costing is determined to be $370,000. How much income is reported under absorption costing? О Multiple Choice $450,000 $610,000 $280,000 $370,000 О $290,000

4 During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials Direct labor Variable overhead 3 Fixed overhead $6 per unit $4 per unit $240,000 $5 per unit per year The company produced 30,000 units, and sold 20,000 units, leaving 10,000 units in inventory at year-end. Income calculated under variable costing is determined to be $370,000. How much income is reported under absorption costing? О Multiple Choice $450,000 $610,000 $280,000 $370,000 О $290,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4E: On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and...

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