Assume absorption costing net income is $42000, beginning inventory co inventory consists of 840 units, the variable overhead rate is $10 per uni is $15 per unit. Determine the net income under variable costing.

Assume absorption costing net income is $42000, beginning inventory co inventory consists of 840 units, the variable overhead rate is $10 per uni is $15 per unit. Determine the net income under variable costing.

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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Question

Assume absorption costing net income is $42000, beginning inventory consists of O units and ending
inventory consists of 840 units, the variable overhead rate is $10 per unit, and the fixed overhead rate
is $15 per unit. Determine the net income under variable costing.
$63000
$54600
$29400
$21000

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