The following information applies to Hawks Corporation: Beginning Inventory 0 Units Ending Inventory 4,000 units Units produced 40,000 units Direct labor per unit $22 Direct materials per unit $15 Variable manufacturing overhead per unit $5 Fixed manufacturing overhead per unit $12 Variable operating expenses per unit $10 Fixed operating expenses $80,000 Using absorption costing, what will Hawks record as gross margin if the units were sold for $95 each and assuming no variances were reported? Question 8 options: a) $504,000. b) $1,908,000. c) $1,548,000. d) $1,476,000.
The following information applies to Hawks Corporation: Beginning Inventory 0 Units Ending Inventory 4,000 units Units produced 40,000 units Direct labor per unit $22 Direct materials per unit $15 Variable manufacturing overhead per unit $5 Fixed manufacturing overhead per unit $12 Variable operating expenses per unit $10 Fixed operating expenses $80,000 Using absorption costing, what will Hawks record as gross margin if the units were sold for $95 each and assuming no variances were reported? Question 8 options: a) $504,000. b) $1,908,000. c) $1,548,000. d) $1,476,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following information applies to Hawks Corporation:
Beginning Inventory 0 Units
Ending Inventory 4,000 units
Units produced 40,000 units
Direct labor per unit $22
Direct materials per unit $15
Variable manufacturing overhead per unit $5
Fixed manufacturing overhead per unit $12
Variable operating expenses per unit $10
Fixed operating expenses $80,000
Using absorption costing, what will Hawks record as gross margin if the units were sold for $95 each and assuming no variances were reported?
Question 8 options:
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