A business operated at 100% of capacity during its first month, with the following results: Sales (112 units)   $560,000 Production costs (140 units):      Direct materials $70,000      Direct labor 17,500      Variable factory overhead 31,500      Fixed factory overhead 28,000 147,000 Operating expenses:      Variable operating expenses $5,450      Fixed operating expenses 3,690 9,140 The amount of operating income that would be reported on the variable costing income statement is a. $559,860 b. $459,350 c. $427,660 d. $550,860

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A: Variable cost of Goods Sold per unit = Direct material + direct labor + variable manufacturing…

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Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: Product cost is the amount of cost incurred by the entity on the making of the goods. It includes…

Q: A manufacturer reports direct materials of $5 per unit, direct labor of $2 per unit, and variable…

A: Income statement is a financial statement that shows the profitability, total revenue and total…

Q: .A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Introduction: Variable costing: Variable costing product cost = Direct materials + Direct labor +…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: VARIABLE COSTINGVariable Costing is a Cost Managerial Accounting Method in which all variable cost…

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Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

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Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Contribution Margin: To get the contribution margin, take the selling price per unit and subtract…

Q: 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement…

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Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…

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Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

A: Absorption costing is one of the techniques used to calculate the amount of profit generated by the…

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Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

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Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

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Q: The following information is for a company that produced 10,000 units and sold 9,0000 units during…

A: Solution: The difference in variable cost and absorption is that of treatment of fixed manufacturing…

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Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

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Q: Farris Corporation, which has only one product, has provided the following data concerning its most…

A: Marginal costing method: It is also called the Variable costing method. In this method, all the…

Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

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Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

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Q: A business operated at 100% of capacity during its first month, with the following results: Sales…

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Q: A company has a net income of $918,000 based on variable costing method. Beginning and ending…

A: Absorption costing is a kind of costing method. Net income under absorption costing can be found out…