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?

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 5E: On April 30, the end of the first month of operations, Joplin Company prepared the following income...

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