Archer Corp. planned and actually manufactured 250,000 units of its single product in 2015, its first year of operations. Variable manufacturing costs were $28 per unit of product. Planned and actual fixed manufacturing costs were $750,000, and marketing and administrative costs totaled $500,000 in 2015. Archer sold 150,000 units of product in 2015 at a selling price of $38 per unit. What is Archer's 2015 operating income using variable costing?

Archer Corp. planned and actually manufactured 250,000 units of its single product in 2015, its first year of operations. Variable manufacturing costs were $28 per unit of product. Planned and actual fixed manufacturing costs were $750,000, and marketing and administrative costs totaled $500,000 in 2015. Archer sold 150,000 units of product in 2015 at a selling price of $38 per unit. What is Archer's 2015 operating income using variable costing?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 8E: The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is...

See similar textbooks

Similar questions

Archer Corp. planned and actually manufactured 250,000 units of its single product in 2015, its first year of operations. Variable manufacturing costs were $28 per unit of product. Planned and actual fixed manufacturing costs were $750,000, and marketing and administrative costs totaled $500,000 in 2015. Archer sold 150,000 units of product in 2015 at a selling price of $38 per unit. What is Archer's 2015 operating income using variable costing?
The per unit manufacturing cost under variable costing is _.
how many units did the company sell in 2009?
Please solve this problem and give answer
Would net income for Chandler Compnay in 2016 be higher if calculated using variable costing or using absorption costing?
The total cost incurred in 2016 at various output levels in a factory have been measured as follows: Output UNITS TOTAL Cost 20 6,566 32 6,510 34 6,800 46 6,985 48 7,380 When output is 80 units or more, another factory unit must be rented and fixed costs therefore increase by 100%. Variable cost is forecast to rise by 10% in 2017. Required: Calculate the estimated total cost for producing 100 units in 2017
CVP computations. Garrett Manufacturing sold 410,000 units of its product for $68 per unit in 2017.Variable cost per unit is $60, and total fixed costs are $1,640,000.1. Calculate (a) contribution margin and (b) operating income.2. Garrett’s current manufacturing process is labor intensive. Kate Schoenen, Garrett’s production manager,has proposed investing in state-of-the-art manufacturing equipment, which will increase the annualfixed costs to $5,330,000. The variable costs are expected to decrease to $54 per unit. Garrett expectsto maintain the same sales volume and selling price next year. How would acceptance of Schoenen’sproposal affect your answers to (a) and (b) in requirement 1?3. Should Garrett accept Schoenen’s proposal? Explain.
During 2022, Bridgeport Corp. produced 45,100 units and sold 36,080 for $14.00 per unit. Variable manufacturing costs were $4.00 per unit. Annual fixed manufacturing overhead was $108,240. Variable selling and administrative costs were $3.00 per unit sold, and fixed selling and administrative expenses were $19,900. (a) Prepare an absorption-costing income statement. (b) Your answer is correct. 4 Sales Cost of goods sold Beginning inventory Add ✓ Costs of goods manufactured Goods available for sale Less Ending inventory Gross margin Less Selling and administrative expenses Operating income eTextbook and Media Bridgeport Corp. Income Statement-Absorption Costing For the Year Ended December 31, 2022 Variable costing operating income $ Absorption costing operating income Fixed manufacturing overhead costs deferred in ending inventory $ $ 288640 i 288640 0 57728 i 505120 230912 i 274208 Reconcile the difference between the net income under variable costing and the net income under…
What is the per unit manufacturing cost under variable costing?
A company with fixed manufacturing cost of $500,000 produces 100,000 units in 2008 and 125,000 units in 2009. The company sells 90,000 units each in 2008 and 2009. Other cost and selling price are unchanged for 2008 and 2009. Which of the following would be most correct? a. variable costing income would be greater in 2009 than in 2008 b. full costing income would be greater in 2009 than in 2008 c. variable costing income will be the same in 2008 and 2009 d. both B and C are correct
In 2012, Grant Co. sold 160,000 units of its product at a selling price of $40. The variable cost per unit was $30, and Grant reported net income for the year of $200,000. What was the amount of Grant's fixed costs for the year?
What is the per unit manufacturing cost under variable costing?