Harris Corporation produces a single product. Last year, Harris manufactured 27,120 units and sold 21,800 units. Production costs for the year were as follows: Fixed manufacturing overhead $461,040 Variable manufacturing overhead $208,824 Direct labor Direct materials $124,752 $222,384 Sales were $915,600, for the year, variable selling and administrative expenses were $128,620, and fixed selling and administrative expenses were $197,976. There was no beginning Inventory. Assume that direct labor is a variable cost. Under variable costing, what is the company's net operating income for the year?
Harris Corporation produces a single product. Last year, Harris manufactured 27,120 units and sold 21,800 units. Production costs for the year were as follows: Fixed manufacturing overhead $461,040 Variable manufacturing overhead $208,824 Direct labor Direct materials $124,752 $222,384 Sales were $915,600, for the year, variable selling and administrative expenses were $128,620, and fixed selling and administrative expenses were $197,976. There was no beginning Inventory. Assume that direct labor is a variable cost. Under variable costing, what is the company's net operating income for the year?
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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