Oak Mart, a producer of solid oak tables, reports the following data from its first year of business. $320 per unit. 117,000 units 117,000 units $ 12 per unit $ 4,600,000 per year $40 per unit $ 62 per unit $ 28 per unit $ 7,020,000 per year Sales price per unit Units produced this year Units sold this year Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor Variable overhead. Fixed overhead 1. Prepare the current year income statement using variable costing.

Oak Mart, a producer of solid oak tables, reports the following data from its first year of business. $320 per unit. 117,000 units 117,000 units $ 12 per unit $ 4,600,000 per year $40 per unit $ 62 per unit $ 28 per unit $ 7,020,000 per year Sales price per unit Units produced this year Units sold this year Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor Variable overhead. Fixed overhead 1. Prepare the current year income statement using variable costing.

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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A company produced and sold 3,400 units of its only product this year. The sales price is $162 per unit. Fixed costs include overhead of $85,000 per year, and selling and administrative expenses of $68,000 per year. Variable costs per unit follow. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Use variable costing to compute contribution margin. Variable expenses Contribution Margin (Variable Costing) $ 28 per unit $ 30 per unit $5 per unit 34 per unit
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