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Home Insert Page Layout Formules Data 21,000 1 Units produced 2 Units sold 3 Selling price 4 Variable costs: Manufacturing cost per unit produced: 18,500 432 Direct materials 33 Direct manufacturing labor 23 Manufacturing overhead 62 Marketing cost per unit sold 10 Fixed costs: Manufacturing costs 46 $1,550,000 906,300 11 12 Administrative costs 13 Marketing costs 1,479,000 %24 %24

Home Insert Page Layout Formules Data 21,000 1 Units produced 2 Units sold 3 Selling price 4 Variable costs: Manufacturing cost per unit produced: 18,500 432 Direct materials 33 Direct manufacturing labor 23 Manufacturing overhead 62 Marketing cost per unit sold 10 Fixed costs: Manufacturing costs 46 $1,550,000 906,300 11 12 Administrative costs 13 Marketing costs 1,479,000 %24 %24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Horace Company manufactures a professional-grade vacuum cleaner and began operations in 2017. For 2017, Horace budgeted to produce and sell 25,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2017 are given in attatched picture:

Q.Prepare a 2017 income statement for Horace Company using variable costing.

Home Insert Page Layout Formules Data 21,000 1 Units produced 2 Units sold 3 Selling price 4 Variable costs: Manufacturing cost per unit produced: 18,500 432 Direct materials 33 Direct manufacturing labor 23 Manufacturing overhead 62 Marketing cost per unit sold 10 Fixed costs: Manufacturing costs 46 $1,550,000 906,300 11 12 Administrative costs 13 Marketing costs 1,479,000 %24 %24
Transcribed Image Text:Home Insert Page Layout Formules Data 21,000 1 Units produced 2 Units sold 3 Selling price 4 Variable costs: Manufacturing cost per unit produced: 18,500 432 Direct materials 33 Direct manufacturing labor 23 Manufacturing overhead 62 Marketing cost per unit sold 10 Fixed costs: Manufacturing costs 46 $1,550,000 906,300 11 12 Administrative costs 13 Marketing costs 1,479,000 %24 %24
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