Galaxy, Inc., a manufacturer of telescopes, began operations on June 1 of the current year. During this time, the company produced 60,000 units and sold 40,000 units at a sales price of $600 per unit. Cost information for this year is shown in the following table: Production costs Direct materials $ 90 per unit Direct labor $ 75 per unit Variable overhead $ 4 per unit Fixed overhead $ 420,000 in total Non-production costs Variable selling and administrative $ 80,000 in total Fixed selling and administrative $ 520,000 in total Given the Galaxy Inc. data, what is net income using variable costing?
Galaxy, Inc., a manufacturer of telescopes, began operations on June 1 of the current year. During this time, the company produced 60,000 units and sold 40,000 units at a sales price of $600 per unit. Cost information for this year is shown in the following table: Production costs Direct materials $ 90 per unit Direct labor $ 75 per unit Variable overhead $ 4 per unit Fixed overhead $ 420,000 in total Non-production costs Variable selling and administrative $ 80,000 in total Fixed selling and administrative $ 520,000 in total Given the Galaxy Inc. data, what is net income using variable costing?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Galaxy, Inc., a manufacturer of telescopes, began operations on June 1 of the current year. During this time, the company produced 60,000 units and sold 40,000 units at a sales price of $600 per unit. Cost information for this year is shown in the following table:
| Production costs | |||
| Direct materials | $ | 90 | per unit |
| Direct labor | $ | 75 | per unit |
| Variable |
$ | 4 | per unit |
| Fixed overhead | $ | 420,000 | in total |
| Non-production costs | |||
| Variable selling and administrative | $ | 80,000 | in total |
| Fixed selling and administrative | $ | 520,000 | in total |
Given the Galaxy Inc. data, what is net income using variable costing?
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