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

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

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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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

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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