vanhoe Company sells its product for $10400 per unit. Variable costs per unit are: manufacturing, $5000; and selling and administrative, $135. Fixed costs are: $50400 manufacturing overhead, and $60400 selling and administrative. There was no beginning inventory at 1/1/20. Production was 36 units per year in 2020–2022. Sales were 36 units in 2020, 32 units in 2021, and 40 units in 2022. Income under absorption costing for 2022 is $99800. $88280. $93280. $94200.
vanhoe Company sells its product for $10400 per unit. Variable costs per unit are: manufacturing, $5000; and selling and administrative, $135. Fixed costs are: $50400 manufacturing overhead, and $60400 selling and administrative. There was no beginning inventory at 1/1/20. Production was 36 units per year in 2020–2022. Sales were 36 units in 2020, 32 units in 2021, and 40 units in 2022. Income under absorption costing for 2022 is $99800. $88280. $93280. $94200.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 4BE
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Ivanhoe Company sells its product for $10400 per unit. Variable costs per unit are: manufacturing, $5000; and selling and administrative, $135. Fixed costs are: $50400 manufacturing overhead, and $60400 selling and administrative. There was no beginning inventory at 1/1/20. Production was 36 units per year in 2020–2022. Sales were 36 units in 2020, 32 units in 2021, and 40 units in 2022.
Income under absorption costing for 2022 is
Income under absorption costing for 2022 is
$99800.
$88280.
$93280.
$94200.
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