HarborTech Inc. operated at 100% capacity during its first month, with the following results: • . Sales (120 units) = $144,000 Production Costs (130 units): • Direct Materials = $52,000 •⚫ Direct Labor = $26,000 • Variable Factory Overhead = $3,900 • Fixed Factory Overhead = $9,100 Total Production Costs = $91,000 Operating Expenses: Variable = $10,000 • Fixed = $1,500 Total Operating Expenses = $11,500 What is the amount of gross profit reported on the absorption costing income statement? a) $60,000 b) $49,000 c) $52,700 d) $51,000

HarborTech Inc. operated at 100% capacity during its first month, with the following results: • . Sales (120 units) = $144,000 Production Costs (130 units): • Direct Materials = $52,000 •⚫ Direct Labor = $26,000 • Variable Factory Overhead = $3,900 • Fixed Factory Overhead = $9,100 Total Production Costs = $91,000 Operating Expenses: Variable = $10,000 • Fixed = $1,500 Total Operating Expenses = $11,500 What is the amount of gross profit reported on the absorption costing income statement? a) $60,000 b) $49,000 c) $52,700 d) $51,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

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