Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: Per Unit Per Year $200 $ 69 $ 50 $ 12 $8 Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed selling and administrative expense Fixed manufacturing overhead Using variable costing, what is the net operating income for the second year of operations? $ 110,000 $ 300,000

Principles of Accounting Volume 2
19th Edition
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Chapter6: Activity-based, Variable, And Absorption Costing
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Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of
operations:
Selling price
Direct materials
Direct labor
Variable manufacturing overhead
Per Unit Per Year
$ 200
$69
$ 50
$12
$8
Sales commission
Fixed selling and administrative expense
Fixed manufacturing overhead
Using variable costing, what is the net operating income for the second year of operations?
$ 110,000
$ 300,000
Transcribed Image Text:Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: Selling price Direct materials Direct labor Variable manufacturing overhead Per Unit Per Year $ 200 $69 $ 50 $12 $8 Sales commission Fixed selling and administrative expense Fixed manufacturing overhead Using variable costing, what is the net operating income for the second year of operations? $ 110,000 $ 300,000
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