Question: 77 Boston, Inc., planned and actually manufactured 190,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $9 per unit sold. Planned and actual fixed manufacturing costs were $950,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $360,000. Boston sold 130,000 units of a product at $40 per unit. Boston's 2017 operating income using absorption costing is a) $420,000 b) $120,000 c) $480,000 d) $780,000 e) none of these.
Question: 77 Boston, Inc., planned and actually manufactured 190,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $9 per unit sold. Planned and actual fixed manufacturing costs were $950,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $360,000. Boston sold 130,000 units of a product at $40 per unit. Boston's 2017 operating income using absorption costing is a) $420,000 b) $120,000 c) $480,000 d) $780,000 e) none of these.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question: 77
Boston, Inc., planned and actually manufactured 190,000 units of its single product in 2017,
its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable
operating (nonmanufacturing) cost was $9 per unit sold. Planned and actual fixed
manufacturing costs were $950,000. Planned and actual fixed operating
(nonmanufacturing) costs totaled $360,000. Boston sold 130,000 units of a product at $40
per unit.
Boston's 2017 operating income using absorption costing is
a) $420,000
b) $120,000
c) $480,000
d) $780,000
e) none of these.
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