Locklear, Inc. reports the following information for the year ended December 31:Units soldSales priceDirect materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadVariable selling and administrative costsFixed selling and administrative costs650 units$160 per unit$25 per unit$11 per unit$15per unit$25 per unit$6 per unit$12,600 per yearThe operating income calculated using variable costing and absorption costing amounted to $9,100 and $10,300,respectively. There were no beginning inventories. Determine the total fixed manufacturing overhead that will beexpensed under absorption costing for the year.OA. $32,500B. $16,250C. $17,450D. $33,150

Name: Locklear, Inc. reports the following information for the year ended D
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Description: Locklear, Inc. reports the following information for the year ended December 31:Units soldSales priceDirect materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadVariable selling and administrative costsFixed selling and ad

Absorption costing is the costing method which determines the net operating income by considering…

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Accounting

Locklear, Inc. reports the following information for the year ended December 31: Units sold Sales price 650 units $160 per unit $25 per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs $11 per unit $15 per unit -$25 per unit $6 per unit $12,600 per year The operating income calculated using variable costing and absorption costing amounted to $9,100 and $10,300, respectively. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year. A. $32,500 OB. $16,250 C. $17,450 D. $33,150

Locklear, Inc. reports the following information for the year ended December 31: Units sold Sales price 650 units $160 per unit $25 per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs $11 per unit $15 per unit -$25 per unit $6 per unit $12,600 per year The operating income calculated using variable costing and absorption costing amounted to $9,100 and $10,300, respectively. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year. A. $32,500 OB. $16,250 C. $17,450 D. $33,150

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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