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 racketsand sold 5,230. Each racket was sold at a price of $90. Fixed overhead costs are $86,450 per year, and fixed selling andadministrative costs are $66,600 per year. The company also reports the following per unit variable costs for the year.Direct materialsDirect laborVariable overheadVariable selling and administrative expensesQS 19-4 (Algo) Variable costing income statement LO P2Prepare an income statement under variable costing.ACES INCORPORATEDIncome Statement (Variable Costing)SalesLess: Variable expensesVariable cost of goods soldVariable selling and administrative expensesFixed selling and administrative expensesContribution marginLess: Fixed expensesFixed selling and administrative expensesFixed overheadVariable selling and administrative expensesIncome$ 130,7505,230$ 66,60086,450$ 470,700$135,980334,720153,05085,060$ 1285

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

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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