Saturn Manufacturing planned and produced 200,000 units of its only product during the current year. Variable manufacturing costs were $30 per unit. Planned and actual fixed manufacturing costs were $600,000, and selling and administrative costs totaled $400,000. Saturn sold 150,000 units at $50 per unit. Calculate Saturn's operating income using absorption costing.

Saturn Manufacturing planned and produced 200,000 units of its only product during the current year. Variable manufacturing costs were $30 per unit. Planned and actual fixed manufacturing costs were $600,000, and selling and administrative costs totaled $400,000. Saturn sold 150,000 units at $50 per unit. Calculate Saturn's operating income using absorption costing.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter13: The Balanced Scorecard: Strategic-based Control

Section: Chapter Questions

Problem 8E: Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its...

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Calculate Saturn's operating income using absorption costing?