Fixed manufacturing overhead $144,750 Fixed selling and administrative expense $10,200 What is the net operating income for the month under absorption costing? $6,000 O $38,850 O $17,550 $11,550
Fixed manufacturing overhead $144,750 Fixed selling and administrative expense $10,200 What is the net operating income for the month under absorption costing? $6,000 O $38,850 O $17,550 $11,550
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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
Transcribed Image Text:Variable manufacturing overhead
$20
Variable selling and administrative expense $ 24
Fixed costs:
Fixed manufacturing overhead
$144,750
Fixed selling and administrative expense $10,200
What is the net operating income for the month under absorption costing?
$6,000
$38,850
O $17,550
O $11,550

Transcribed Image Text:Farris Corporation, which has only one product, has provided the following data concerning its most recent month of
operations:
8.000
Selling price
Units in beginning inventory
Units produced
Units sold
$168
O
9,650
9,250
Units in ending inventory 400
Variable costs per unit:
$32
$74
$20
Variable selling and administrative expense $ 24
Fixed costs:
Fixed manufacturing overhead
$144,750
Fixed selling and administrative expense $10,200
mat is the net operating income for the month under absorption costing?
Direct materials
Direct labor
Variable manufacturing overhead
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