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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 Prepare an income statement under variable costing. Answer is complete but not entirely correct. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 0000 0000 132.000 10.560 $ 87,750 C 66.800 $ 470.700 142,500 332,640 $ 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 Prepare an income statement under variable costing. Answer is complete but not entirely correct. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 0000 0000 132.000 10.560 $ 87,750 C 66.800 $ 470.700 142,500 332,640 $ 12 8 5 2

FINANCIAL ACCOUNTING
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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am. 121.

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 Prepare an income statement under variable costing. Answer is complete but not entirely correct. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 0000 0000 132,000 10.560 $87,750 O 66,800 $470,700 142,560 332,640 154,550
Transcribed Image Text: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 Prepare an income statement under variable costing. Answer is complete but not entirely correct. ACES INCORPORATED Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 0000 0000 132,000 10.560 $87,750 O 66,800 $470,700 142,560 332,640 154,550
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