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Start Me Up Incorporated manufactures a caffeinated energy drink that sells for $4.30 each. The results for its first year of operations appear in the table below: Number of drinks produced Number of drinks sold Direct materials per drink Direct labor per drink Variable manufacturing overhead per drink Total fixed manufacturing overhead Total fixed selling and administrative costs Projections 49,000 46,200 $ 0.58 $ 0.28 $0.18 $ 30,380 $ 51,500 Required: 1. Compute the operating income for the first year under full costing. 2. Compute the operating income for the first year under variable costing.

Start Me Up Incorporated manufactures a caffeinated energy drink that sells for $4.30 each. The results for its first year of operations appear in the table below: Number of drinks produced Number of drinks sold Direct materials per drink Direct labor per drink Variable manufacturing overhead per drink Total fixed manufacturing overhead Total fixed selling and administrative costs Projections 49,000 46,200 $ 0.58 $ 0.28 $0.18 $ 30,380 $ 51,500 Required: 1. Compute the operating income for the first year under full costing. 2. Compute the operating income for the first year under variable costing.

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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Start Me Up Incorporated manufactures a caffeinated energy drink that sells for $4.30 each. The results for its first year of operations appear in the table below: Number of drinks produced Number of drinks sold Direct materials per drink Direct labor per drink Variable manufacturing overhead per drink Total fixed manufacturing overhead Total fixed selling and administrative costs Projections 49,000 46, 200 $ 0.58 $ 0.28 $ 0.18 1. Operating income for the first year under full costing 2. Operating income for the first year under variable costing $ 30,380 $ 51,500 Required: 1. Compute the operating income for the first year under full costing. 2. Compute the operating income for the first year under variable costing. (For all requirements, do not round intermediate calculations.) U
Transcribed Image Text:Start Me Up Incorporated manufactures a caffeinated energy drink that sells for $4.30 each. The results for its first year of operations appear in the table below: Number of drinks produced Number of drinks sold Direct materials per drink Direct labor per drink Variable manufacturing overhead per drink Total fixed manufacturing overhead Total fixed selling and administrative costs Projections 49,000 46, 200 $ 0.58 $ 0.28 $ 0.18 1. Operating income for the first year under full costing 2. Operating income for the first year under variable costing $ 30,380 $ 51,500 Required: 1. Compute the operating income for the first year under full costing. 2. Compute the operating income for the first year under variable costing. (For all requirements, do not round intermediate calculations.) U
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