A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,300 units) Line Item Description Amount Direct materials $171,800 Direct labor $238,700 Variable factory overhead $255,200 Fixed factory overhead $100,800 Total production costs $766,500 Operating Expenses Variable operating expenses $132,000 Fixed operating expenses $43,300 Total operating expenses $175,300 If 1,800 units remain unsold at the end of the month and sales total $1,005,000 for the month, the amount of operating income reported on the variable costing income statement would be A) $128,630 B) $75,393 C) $65,479 D) $92,636

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,300 units) Line Item Description Amount Direct materials $171,800 Direct labor $238,700 Variable factory overhead $255,200 Fixed factory overhead $100,800 Total production costs $766,500 Operating Expenses Variable operating expenses $132,000 Fixed operating expenses $43,300 Total operating expenses $175,300 If 1,800 units remain unsold at the end of the month and sales total $1,005,000 for the month, the amount of operating income reported on the variable costing income statement would be A) $128,630 B) $75,393 C) $65,479 D) $92,636

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 23E: Orinder Company provided the following information for the last calendar year: During the year,...

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The records of Burris Inc. reflect the following data: Work in process, beginning of month2,000 units one-half completed at a cost of 1,250 for materials, 675 for labor, and 950 for overhead. Production costs for the monthmaterials, 99,150; labor, 54,925; factory overhead, 75,050. Units completed and transferred to stock38,500. Work in process, end of month3,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost.
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