Mandato Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 68 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 10 Direct labor $ 6 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 220,000 Selling and
Mandato Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 68 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 10 Direct labor $ 6 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 220,000 Selling and
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...
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Subject: Cost management& accounting
MCQ's
Mandato Corporation has provided the following data for its two most recent years of operation:
The net operating income (loss) under variable costing in Year 1 is closest to:
Selling price per unit | $ | 68 |
Variable manufacturing cost per unit produced: | ||
Direct materials | $ | 10 |
Direct labor | $ | 6 |
Variable manufacturing |
$ | 4 |
Fixed manufacturing overhead per year | $ | 220,000 |
Selling and administrative expenses: | ||
Variable selling and administrative expense per unit sold | $ | 6 |
Fixed selling and administrative expense per year | $ | 61,000 |
Year 1 | Year 2 | |
Units in beginning inventory | 0 | 1,000 |
Units produced during the year | 11,000 | 10,000 |
Units sold during the year | 10,000 | 7,000 |
Units in ending inventory | 1,000 | 4,000 |
The net operating income (loss) under variable costing in Year 1 is closest to:
$26,000
|
||
$144,000
|
||
$2,000
|
||
$174,000
|
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