A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) Production costs (100 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $40,000 20,000 2,000 7,000 O b. $21,000 O c. $18,900 Od. $18,200 $ 8,000 1,000 $90,000 69,000 9,000 What is the amount of the income from operations that would be reported on the variable costing income statement? a. $18,000

A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) Production costs (100 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $40,000 20,000 2,000 7,000 O b. $21,000 O c. $18,900 Od. $18,200 $ 8,000 1,000 $90,000 69,000 9,000 What is the amount of the income from operations that would be reported on the variable costing income statement? a. $18,000

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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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 Fixed operating expenses $70,000 20,000 10,000 2,000 $17,000 1,000 $102,000 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 a. $54,000 b. $50,000 c. $70,000 d. not reported
A business operated at 100% capacity during its first month of operations, with the following results: Sales (90 units) $90,000 Production costs (100 units) Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 Total manufacturing costs 69,000 Operating expenses: Variable Variable operating expenses $ 8,000 Fixed operating expenses 1,000 Total operating expenses 9,000 Use this information to complete a variable costing income statement. Please when completing the variable costing income statement , offer details where the numbers are coming from.
A business operated at 100% of capacity during its first month, with the following results: Sales (98 units) $490,000 Production costs (122 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $65,941 16,836 29,463 28,060 Oc. $389,996 Od. $367,456 Operating expenses: Variable operating expenses Fixed operating expenses 9,844 What is the amount of the income from operations that would be reported on the absorption costing income statement? Oa. $394,087 Ob. $489,878 140,300 $5,753 4,091
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $183,100 Direct labor 227,700 Variable factory overhead 246,200 Fixed factory overhead 104,700 $761,700 Operating expenses: Variable operating expenses $122,200 Fixed operating expenses 49,300 171,500 If 1,600 units remain unsold at the end of the month and sales total $1,079,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? a.$216,975 b.$71,270 c.$207,274 d.$61,474
A business operated at 100% of capacity during its first month, with the following results: Sales (101 units) $484,800 Production costs (126 units): Direct materials $65,379 Direct labor 16,692 Variable factory overhead 29,212 Fixed factory overhead 27,821 139,104 Operating expenses: Variable operating expenses $5,236 Fixed operating expenses 4,281 9,517 The amount of gross profit that would be reported on the absorption costing income statement is a.$363,779 b.$373,296 c.$484,674 d.$368,060
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A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $480,000 Production costs (120 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: $60,000 15,000 27,000 24,000 126,000 Variable operating expenses $5,150 Fixed operating expenses 4,080 9,230 The amount of contribution margin that would be reported on the variable costing income statement is a. $470,770 Ob. $389,170 Oc. $393.250 Od. $479,880
www A business operated at 100% of capacity during its first month, with the following results: $480,000 Sales (96 units) Production costs (120 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $60,000 15,000 27,000 24,000 $5,590 3,490 $126,000 9,080 The amount of operating income that would be reported on the variable costing income statement is O a. $479,880 Ob. $365,320 Oc. $392,810 O d. $470,920
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A business operated at 100% of capacity during its first month, with the following results: Sales (103 units) $515,000 Production costs (129 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $69,725 17,802 31,154 29,669 Operating expenses: Variable operating expenses Fixed operating expenses 8,612 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $387,938 Ob. $396,551 Oc. $514,871 Od. $391,410 $5,140 3,472 148,350 20