Acme Company produces a single product. During the current year, Acme produced 32,150 units and sold 26,900 units. There was no beginning inventory. Production costs for the year are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales revenues are $1,277,750, variable selling and administrative expenses are $158,710, and fixed selling and administrative expenses are $212,190. Acme's operating income under variable costing is: $28,350 lower than under absorption costing. $28,350 higher than under absorption costing. $78,750 lower than under absorption costing. $234,695 $154,320 $279,705 $482,250 $78,750 higher than under absorption costing.
Acme Company produces a single product. During the current year, Acme produced 32,150 units and sold 26,900 units. There was no beginning inventory. Production costs for the year are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales revenues are $1,277,750, variable selling and administrative expenses are $158,710, and fixed selling and administrative expenses are $212,190. Acme's operating income under variable costing is: $28,350 lower than under absorption costing. $28,350 higher than under absorption costing. $78,750 lower than under absorption costing. $234,695 $154,320 $279,705 $482,250 $78,750 higher than under absorption costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:Acme Company produces a single product. During the current year,
Acme produced 32,150 units and sold 26,900 units. There was no
beginning inventory. Production costs for the year are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Sales revenues are $1,277,750, variable selling and administrative
expenses are $158,710, and fixed selling and administrative expenses
are $212,190. Acme's operating income under variable costing is:
$28,350 lower than under absorption costing.
$28,350 higher than under absorption costing.
$234,695
$154,320
$279,705
$482,250
$78,750 lower than under absorption costing.
$78,750 higher than under absorption costing.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education