Krepps Corporation produces a single product. Last year, Krepps manufactured 33,110 units and sold 27,600 units. Production costs for the year were as follows: Direct materials $248,325 $175,483 Direct labor Variable manufacturing overhead $294,679 Fixed manufacturing overhead $463,540 Sales totaled $1,242,000 for the year, variable selling and administrative expenses totaled $140,760, and fixed selling and administrative expenses totaled $221,837. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be: Multiple Choice $30,305 lower than under absorption costing. $77,140 higher than under absorption costing. $30,305 higher than under absorption costing. $77,140 lower than under absorption costing.

Krepps Corporation produces a single product. Last year, Krepps manufactured 33,110 units and sold 27,600 units. Production costs for the year were as follows: Direct materials $248,325 $175,483 Direct labor Variable manufacturing overhead $294,679 Fixed manufacturing overhead $463,540 Sales totaled $1,242,000 for the year, variable selling and administrative expenses totaled $140,760, and fixed selling and administrative expenses totaled $221,837. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be: Multiple Choice $30,305 lower than under absorption costing. $77,140 higher than under absorption costing. $30,305 higher than under absorption costing. $77,140 lower than under absorption costing.

Name: Krepps Corporation produces a single product. Last year, Krepps manuf
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Description: Krepps Corporation produces a single product. Last year, Krepps manufactured 33,110 units and sold 27,600 units. Production costs for the year were as follows:$248,325$175,483$294,679$463,540Direct materialsDirect laborVariable manufacturing overhea

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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