Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,650 rackets and sold 5,230. Each racket was sold at a price of $90. Fixed overhead costs are $86,450 per year, and fixed selling and administrative costs are $66,600 per year. The company also reports the following per unit variable costs for the year. Direct materials. Direct labor Variable overhead Variable selling and administrative expenses $ 12 8 5 2
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,650 rackets and sold 5,230. Each racket was sold at a price of $90. Fixed overhead costs are $86,450 per year, and fixed selling and administrative costs are $66,600 per year. The company also reports the following per unit variable costs for the year. Direct materials. Direct labor Variable overhead Variable selling and administrative expenses $ 12 8 5 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Use the following information for the Quick Study below. (Algo)
[The following information applies to the questions displayed below.]
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,650 rackets
and sold 5,230. Each racket was sold at a price of $90. Fixed overhead costs are $86,450 per year, and fixed selling and
administrative costs are $66,600 per year. The company also reports the following per unit variable costs for the year.
Direct materials
Direct labor
Variable overhead
Variable selling and administrative expenses
QS 19-4 (Algo) Variable costing income statement LO P2
Prepare an income statement under variable costing.
ACES INCORPORATED
Income Statement (Variable Costing)
Sales
Less: Variable expenses
Variable cost of goods sold
Variable selling and administrative expenses
Fixed selling and administrative expenses
Contribution margin
Less: Fixed expenses
Fixed selling and administrative expenses
Fixed overhead
Variable selling and administrative expenses
Income
$ 130,750
5,230
$ 66,600
86,450
$ 470,700
$
135,980
334,720
153,050
85,060
$ 12
8
5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F941b30af-546b-4880-af23-011522407041%2F43360553-5343-4307-bc1f-fbefcdc147d4%2F8b8d5q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following information for the Quick Study below. (Algo)
[The following information applies to the questions displayed below.]
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,650 rackets
and sold 5,230. Each racket was sold at a price of $90. Fixed overhead costs are $86,450 per year, and fixed selling and
administrative costs are $66,600 per year. The company also reports the following per unit variable costs for the year.
Direct materials
Direct labor
Variable overhead
Variable selling and administrative expenses
QS 19-4 (Algo) Variable costing income statement LO P2
Prepare an income statement under variable costing.
ACES INCORPORATED
Income Statement (Variable Costing)
Sales
Less: Variable expenses
Variable cost of goods sold
Variable selling and administrative expenses
Fixed selling and administrative expenses
Contribution margin
Less: Fixed expenses
Fixed selling and administrative expenses
Fixed overhead
Variable selling and administrative expenses
Income
$ 130,750
5,230
$ 66,600
86,450
$ 470,700
$
135,980
334,720
153,050
85,060
$ 12
8
5
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