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

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

A: Product cost is the cost incurred on the production or making of a product. It is the cost that…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Unit costs include all manufacturing fixed and variable cost. Variable costs are flexible as per…

Q: The following information was collected for the first year of manufacturing for Appliance Apps:…

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

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

A: Absorption costing also called as historical costing is the practice of charging both fixed and…

Q: Information from SAAX, Inc's first year of operations is available below: Sales in units 5,000…

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

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

A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…

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…

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

A: The objective of the question is to calculate the total gross margin for the month under the…

Q: Summarized data for Walrus Co. for its first year of operations are: Sales (90,000 units)…

A: Income statement under Absorption costing Income statement under Variable costing

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Under the variable costing, fixed manufacturing overhead cost is considered as a period cost.…

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

A: Variable costing:  Sales $90,000Product cost (Variable manufacturing cost)$40,000 Direct…

Q: Prior to the first month of operations ending October 31, Marshall Inc. estimated the following…

A: Income statement in the cost accounting can be prepared using two methods; Absorption costing and…

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: Per unit information for Product M of Adolf Corporation is provided below: $80 per unit Direct…

A: Lets understand the basics. In variable costing period cost are total of fixed cost and all variable…

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

A: The contribution margin is calculated as the difference between sales and variable costs.Gross…

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

A: One of the three crucial financial statements along with the cash flow statement and the balance…

Q: Prepare an estimated income statement, comparing operating results if 23,200 and 25,600 units are…

A: Income Statement is one of the important financial statement to be prepared at the year-end along…

Q: a. 1. Prepare an estimated income statement, comparing operating results if 25,600 and 28,800 units…

A: To determine the product cost of a company two types of costing methods are used which are variable…

Q: Consider the following information for Presidio Inc.'s most recent year of operations. Number of…

A: Income statement is the financial statement that records all the income and expenses of the…

Q: What is the net operating income for the month under variable costing?

A: Here is the calculation of operating income for the month under variable costing method: -

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

A: Under variable costing, fixed manufacturing overhead is considered as a period cost and deducted a…

Q: A business operated at 100% of capacity during its first month, with the following results: $655,400…

A: Income statement: The income statement determines the net income of the business by subtracting the…

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

A: Preparation of income statement under absorption costing and variable costing system are as follows.

Q: The variable-costing income statement for Jackson Company for last year is as follows: Sales (5,000…

A: Per unit product cost using:Absorption costingDirect Material cost per unit$1.60000Direct Labor cost…

Q: If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the…

A: The difference between Total Sales and Total Variable Cost is known as Contribution. All the direct…

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…

Q: Sales (5,000 units) ariable expenses: Cost of goods sold Selling (10% of sales) Contribution margin…

A: Using absorption costing, the fixed manufcaturing overhead costs are also included in the product…

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

A: Operating Income:- Operating income is refers to the income, which shows the amount of profit that a…

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

A:

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

A: In variable costing statement ,we will value the inventory at variable factory cost . Fixed factory…

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…

Q: On October 31, the end of the first month of operations, Maryville Equipment Company prepared the…

A: The income statement is prepared using various methods as variable costing and absorption costing.…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Variable costing is a cost accounting and management concept that deducts fixed manufacturing…

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

A: Under absorption costing, fixed factory overhead is also a product cost and therefore included in…

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…

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

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

A: Absorption costing considers the fixed overhead costs for production as per the units sold and not…

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

A: Ending Inventory (in units) = 27 units Cost per unit = Total Production CostNumber of units…

Q: mpute the income or loss for the special offer. (Round your "Per Unit" answers to 2 decimal places.)…

A: Lets understand the basics.In special order situation management try to evaluate whether special…

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…