Give general account answer Alvin Inc. planned and actually manufactured 200,000 units ofits single product in 2008, its first year of operations. Variablemanufacturing costs were $30 per unit of product. Planned andactual fixed manufacturing costs were $600,000, andmarketing and administrative costs totaled $400,000 in 2004.Alvin sold 120,000 units of product in 2008 at a selling price of$40 per unit. What is Alvin's 2008 operating income usingvariable costing?a. $800,000b. $600,000c. $440,000d. $200,000

Step 1: Key ConceptsUnder variable costing, only variable manufacturing costs are included in the…

Answered: Alvin Inc. planned and actually…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 16DQ

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