[The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 54,000 units and sold 49,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 22 $ 12 $3 $5 Answer is complete but not entirely correct. Net operating income 971,000 X $ 864,000 $ 586,000 The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its fixed selling and administrative expense is traceable to the West region, $230,000 is traceable to the East region, and the remaining $76,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 11. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 49,000 units?
[The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 54,000 units and sold 49,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 22 $ 12 $3 $5 Answer is complete but not entirely correct. Net operating income 971,000 X $ 864,000 $ 586,000 The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its fixed selling and administrative expense is traceable to the West region, $230,000 is traceable to the East region, and the remaining $76,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 11. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 49,000 units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-East and West. The
following information pertains to the company's first year of operations in which it produced 54,000 units and sold 49,000
units.
Variable costs per unit:
Manufacturing:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expense
$ 22
$ 12
$3
$5
The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its
fixed selling and administrative expense is traceable to the West region, $230,000 is traceable to the East region, and the
remaining $76,000 is a common fixed expense. The company will continue to incur the total amount of its fixed
manufacturing overhead costs as long as it continues to produce any amount of its only product.
Answer is complete but not entirely correct.
Net operating income
971,000
$ 864,000
$ 586,000
11. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 49,000 units?
X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffac4b1b8-6a1a-44ad-8899-9e3dc5acdbbf%2Ff0564206-cec7-4c8c-a78d-9af14026ef27%2Fj2t3e2h_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-East and West. The
following information pertains to the company's first year of operations in which it produced 54,000 units and sold 49,000
units.
Variable costs per unit:
Manufacturing:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expense
$ 22
$ 12
$3
$5
The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its
fixed selling and administrative expense is traceable to the West region, $230,000 is traceable to the East region, and the
remaining $76,000 is a common fixed expense. The company will continue to incur the total amount of its fixed
manufacturing overhead costs as long as it continues to produce any amount of its only product.
Answer is complete but not entirely correct.
Net operating income
971,000
$ 864,000
$ 586,000
11. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 49,000 units?
X
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