The amount of gross profit that would be reported on the absorption costing income statement is a.$428,506
The amount of gross profit that would be reported on the absorption costing income statement is a.$428,506
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 23E: Orinder Company provided the following information for the last calendar year: During the year,...
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100%
A business operated at 100% of capacity during its first month, with the following results:
Sales (105 units) | $556,500 | |
Production costs (131 units): | ||
Direct materials | $75,054 | |
Direct labor | 19,163 | |
Variable factory |
33,535 | |
Fixed factory overhead | 31,937 | 159,689 |
Operating expenses: | ||
Variable operating expenses | $5,877 | |
Fixed operating expenses | 3,035 | 8,912 |
The amount of gross profit that would be reported on the absorption costing income statement is
a.$428,506
b.$556,369
c.$422,628
d.$419,593
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