Jean Peck's Furniture manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $400 after negotiations. In the month of January, manufactures 3,100 tables and sells 2,300 tables. Actual fixed costs are the same as the amount of foxed costs budgeted for the month. Budgeted production is equal to actual production, and there is no production-volume variance. The following information is provided for the month of January Variable manufacturing costs $150 per unit Fixed manufacturing costs $105,000 per month Fixed Administrative expenses $27,000 per month At the end of the month Jean Peck's Furniture has an ending inventory of finished goods of 800 units. The company also incurs a sales commission of $11 per unit What is the operating income when using absorption costing? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar) OA $497,099 OB. $470,099 OC. $444,799
Jean Peck's Furniture manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $400 after negotiations. In the month of January, manufactures 3,100 tables and sells 2,300 tables. Actual fixed costs are the same as the amount of foxed costs budgeted for the month. Budgeted production is equal to actual production, and there is no production-volume variance. The following information is provided for the month of January Variable manufacturing costs $150 per unit Fixed manufacturing costs $105,000 per month Fixed Administrative expenses $27,000 per month At the end of the month Jean Peck's Furniture has an ending inventory of finished goods of 800 units. The company also incurs a sales commission of $11 per unit What is the operating income when using absorption costing? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar) OA $497,099 OB. $470,099 OC. $444,799
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Jean Peck's Furniture manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $400 after negotiations. In the month of January, it
manufactures 3,100 tables and sells 2,300 tables. Actual fixed costs are the same as the amount of fixed costs budgeted for the month. Budgeted production is equal
to actual production, and there is no production-volume variance.
The following information is provided for the month of January
Variable manufacturing costs $150 per unit
Fixed manufacturing costs $105,000 per month
Fixed Administrative expenses $27,000 per month
At the end of the month Jean Peck's Furniture has an ending inventory of finished goods of 800 units. The company also incurs a sales commission of $11 per unit.
What is the operating income when using absorption costing? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar)
OA. $497,099
OB. $470,099
OC. $444,799
OD. $471,799
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