A business operated at full capacity during its first month and incurred the following costs: Production costs (15,000 units): ⚫ Direct materials: $165,000 . Direct labor: $195,000 Variable factory overhead: $210,000 Fixed factory overhead: $90,000 Total: $660,000 Operating Expenses: Variable operating expenses: $105,000 ⚫ Fixed operating expenses: $42,000 Total: $147,000 If 2,000 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is: A) $88,000 B) $76,000 C) $95,200 D) $82,400

A business operated at full capacity during its first month and incurred the following costs: Production costs (15,000 units): ⚫ Direct materials: $165,000 . Direct labor: $195,000 Variable factory overhead: $210,000 Fixed factory overhead: $90,000 Total: $660,000 Operating Expenses: Variable operating expenses: $105,000 ⚫ Fixed operating expenses: $42,000 Total: $147,000 If 2,000 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is: A) $88,000 B) $76,000 C) $95,200 D) $82,400

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

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