HairNeat Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2016 and 2017 was 3,000 units. There was no beginning inventory in 2016. The following data summarized the 2016 and 2017 operations: 2016 2017 Units sold 2,500 3,200 Units produced 3,000 3,000 Costs: Variable manufacturing costs per unit $0.65 $0.65 Fixed factory overhead $1,290 $1,290 Variable marketing per unit $0.80 $0.80 Fixed Selling and Administrative $650 $650 Absorption costing operating income for 2016 is calculated to be: Question 9 options: 1) $935 2) $1,150 3) $1,200 4) $1,352
HairNeat Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2016 and 2017 was 3,000 units. There was no beginning inventory in 2016. The following data summarized the 2016 and 2017 operations: 2016 2017 Units sold 2,500 3,200 Units produced 3,000 3,000 Costs: Variable manufacturing costs per unit $0.65 $0.65 Fixed factory overhead $1,290 $1,290 Variable marketing per unit $0.80 $0.80 Fixed Selling and Administrative $650 $650 Absorption costing operating income for 2016 is calculated to be: Question 9 options: 1) $935 2) $1,150 3) $1,200 4) $1,352
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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HairNeat Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2016 and 2017 was 3,000 units. There was no beginning inventory in 2016. The following data summarized the 2016 and 2017 operations:
Absorption costing operating income for 2016 is calculated to be:
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2016
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2017
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Units sold
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2,500
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3,200
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Units produced
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3,000
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3,000
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Costs:
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Variable manufacturing costs per unit
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$0.65
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$0.65
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Fixed factory
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$1,290
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$1,290
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Variable marketing per unit
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$0.80
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$0.80
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|
Fixed Selling and Administrative
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$650
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$650
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Absorption costing operating income for 2016 is calculated to be:
Question 9 options:
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