Assume the following information for each of the first two years of operations for a company that sells only one product for a price of $48 per unit: Variable cost per unit: Direct materials $ 25 Fixed costs per year: Direct labor $ 140,000 Fixed manufacturing overhead $ 192,000 Fixed selling and administrative expenses $ 68,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 20,000 units and sold 18,000 units. During its second year of operations, in produced 20,000 units and sold 22,000 units. What is the net operating income in Year 2 using super-variable costing?
Assume the following information for each of the first two years of operations for a company that sells only one product for a price of $48 per unit: Variable cost per unit: Direct materials $ 25 Fixed costs per year: Direct labor $ 140,000 Fixed manufacturing overhead $ 192,000 Fixed selling and administrative expenses $ 68,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 20,000 units and sold 18,000 units. During its second year of operations, in produced 20,000 units and sold 22,000 units. What is the net operating income in Year 2 using super-variable costing?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume the following information for each of the first two years of operations for a company that sells only one product for a price of $48 per unit:
| Variable cost per unit: | |||
| Direct materials | $ | 25 | |
| Fixed costs per year: | |||
| Direct labor | $ | 140,000 | |
| Fixed manufacturing |
$ | 192,000 | |
| Fixed selling and administrative expenses | $ | 68,000 | |
The company does not incur any variable
Multiple Choice
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$102,000
-
$106,000
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$92,000
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$96,000
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