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Monex reported $65,000 of net income for the year by using absorption costing. The company had no beginning inventory, planned and actual production of 20,000 units, and sales of 18,000 units. Variable manufacturing costs were $20 per unit, and the total budgeted fixed manufacturing overhead was $100,000. Net income under variable costing would be: A. $15,000 B. $55,000 C. $65,000 D. $75,000 E. $115,000

Monex reported $65,000 of net income for the year by using absorption costing. The company had no beginning inventory, planned and actual production of 20,000 units, and sales of 18,000 units. Variable manufacturing costs were $20 per unit, and the total budgeted fixed manufacturing overhead was $100,000. Net income under variable costing would be: A. $15,000 B. $55,000 C. $65,000 D. $75,000 E. $115,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 1CMA
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Monex reported $65,000 of net income for the year by using absorption costing. The company had no beginning inventory, planned and actual production of 20,000 units, and sales of 18,000 units. Variable manufacturing costs were $20 per unit, and the total budgeted fixed manufacturing overhead was $100,000. Net income under variable costing would be: A. $15,000 B. $55,000 C. $65,000 D. $75,000 E. $115,000

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