Dent Company incurred the following costs while producing 560 units: direct materials, $9 per unit, direct labor, $27 per unit, variable manufacturing overhead, $16 per unit, total fixer manufacturing overhead costs, $11,200, variable selling and administrative costs, $10 per unit, total fixed selling and administrative costs, $7,280. There are no beginning inventories What is the operating income using variable costing if 350 units are sold for $140 each? O A. $12,320 O B. $27,300 O C. $13,020 O D. $8,820

Principles of Accounting Volume 2
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ISBN:9781947172609
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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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Dent Company incurred the following costs while producing 560 units: direct materials, $9 per unit, direct labor, $27 per unit, variable manufacturing overhead, $16 per unit; total fixed
manufacturing overhead costs, $11,200; variable selling and administrative costs, $10 per unit, total fixed selling and administrative costs, $7,280. There are no beginning inventories
What is the operating income using variable costing if 350 units are sold for $140 each?
A. $12,320
B. $27,300
C. $13,020
D. $8,820
Transcribed Image Text:Dent Company incurred the following costs while producing 560 units: direct materials, $9 per unit, direct labor, $27 per unit, variable manufacturing overhead, $16 per unit; total fixed manufacturing overhead costs, $11,200; variable selling and administrative costs, $10 per unit, total fixed selling and administrative costs, $7,280. There are no beginning inventories What is the operating income using variable costing if 350 units are sold for $140 each? A. $12,320 B. $27,300 C. $13,020 D. $8,820
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