A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (5,000 units):Direct materialsDirect laborVariable factory overheadFixed factory overheadOperating expenses:Variable operating expensesFixed operating expensesIf 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the amount of manufacturing margin that would be reported on theabsorption costing income statement isa. not reportedOb. $54,000Oc. $50,000Od. $70,000$70,00020,00010,0002,000$17,0001,000$102,00018,000

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Description: A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (5,000 units):Direct materialsDirect laborVariable factory overheadFixed factory overheadOperating expenses:Variable operating expensesF

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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses a. not reported $70,000 20,000 10,000 2,000 Ob. $54,000 Oc. $50,000 Od. $70,000 $17,000 Fixed operating expenses 18,000 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the amount of manufacturing margin that would be reported on the absorption costing income statement is $102,000 1,000

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses a. not reported $70,000 20,000 10,000 2,000 Ob. $54,000 Oc. $50,000 Od. $70,000 $17,000 Fixed operating expenses 18,000 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the amount of manufacturing margin that would be reported on the absorption costing income statement is $102,000 1,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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