A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units) Direct materials $ 70,000 Direct labor $ 20,000 Variable factory overhead $ 10,000 Fixed factory overhead $2,000 $ 1,02,000 Operating expenses: Variable operating expenses $ 17,000 Fixed operating expenses $1,000 $ 1,800 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units) Direct materials $ 70,000 Direct labor $ 20,000 Variable factory overhead $ 10,000 Fixed factory overhead $2,000 $ 1,02,000 Operating expenses: Variable operating expenses $ 17,000 Fixed operating expenses $1,000 $ 1,800 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?
Chapter5: Process Costing
Section: Chapter Questions
Problem 8EB: A production department within a company received materials of $7,000 and conversion costs of $5,000...
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