Andy's Water Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year:Direct labor:12,000 hours @ $20 per hr.Production manager salary:$100,000Factory rent:$48,000Equipment maintenance:$20,000 (considered a variable expense)Equipment depreciation:$20,000Production for the year:12,000 units$2,000,000Total Revenue:Total aquariums sold during the period:15,000 unitsOperating Income under variable costing (after non-production expenses): $408,000Assume that the fixed costs were the same on a per-unit basis during the prior period.What would Operating Income be under absorption costing? (Round per-unit costs to the nearest cent.)Select one:a. $366,000b. $361,020c. $454,980d. None of these options are correct.e. $450,000

S.NoMarginal CostingAbsorption Costing1As the name suggests itself variable cost is considered in…

Andy's Water Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year: Direct labor: Production manager salary: Factory rent: Equipment maintenance: Equipment depreciation: Production for the year: 12,000 hours @ $20 per hr. $100,000 $48,000 $20,000 (considered a variable expense) $20,000 12,000 units Total Revenue: $2,000,000 Total aquariums sold during the period: 15,000 units Operating Income under variable costing (after non-production expenses): $408,000 Assume that the fixed costs were the same on a per-unit basis during the prior period. What would Operating Income be under absorption costing? (Round per-unit costs to the nearest cent.) elect one: O a. $366,000 D b. $361,020 D ( c. $454,980 d. None of these options are correct. e. $450,000

Andy's Water Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year: Direct labor: Production manager salary: Factory rent: Equipment maintenance: Equipment depreciation: Production for the year: 12,000 hours @ $20 per hr. $100,000 $48,000 $20,000 (considered a variable expense) $20,000 12,000 units Total Revenue: $2,000,000 Total aquariums sold during the period: 15,000 units Operating Income under variable costing (after non-production expenses): $408,000 Assume that the fixed costs were the same on a per-unit basis during the prior period. What would Operating Income be under absorption costing? (Round per-unit costs to the nearest cent.) elect one: O a. $366,000 D b. $361,020 D ( c. $454,980 d. None of these options are correct. e. $450,000

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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