General Account - In 2011, Cassen Manufacturing Co. had variable costing operating income of $86,300. Ending inventory decreased during 2011 from 42,000 units to 40,000 units. During both 2010 and 2011, fixed manufacturing overhead was $800,000 and 100,000 units were produced. Determine the absorption costing operating income for 2011.

General Account - In 2011, Cassen Manufacturing Co. had variable costing operating income of $86,300. Ending inventory decreased during 2011 from 42,000 units to 40,000 units. During both 2010 and 2011, fixed manufacturing overhead was $800,000 and 100,000 units were produced. Determine the absorption costing operating income for 2011.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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