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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

FINANCIAL ACCOUNTING
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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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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