Sales (90 units) $90,000 Production costs (100 units) Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 Total manufacturing costs 69,000 Operating expenses: Variable Variable operating expenses $ 8,000 Fixed operating expenses 1,000 Total operating expenses 9,000
Sales (90 units) $90,000 Production costs (100 units) Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 Total manufacturing costs 69,000 Operating expenses: Variable Variable operating expenses $ 8,000 Fixed operating expenses 1,000 Total operating expenses 9,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
5. A business operated at 100% capacity during its first month of operations, with the following results:
Sales (90 units) |
|
$90,000 |
Production costs (100 units) |
|
|
Direct materials |
$40,000 |
|
Direct labor |
20,000 |
|
Variable factory |
2,000 |
|
Fixed factory overhead |
7,000 |
|
Total |
|
69,000 |
Operating expenses: |
|
|
Variable |
|
|
Variable operating expenses |
$ 8,000 |
|
Fixed operating expenses |
1,000 |
|
Total operating expenses |
|
9,000 |
Use this information to complete a variable costing income statement.
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