Wet Pets Inc. makes Direct labor: Production manager salary: Factory rent: Equipment maintenance: Equipment depreciation: Production for the year: 6,600 hours @ $20 per hr $55,000 $26,400 $11,000 (considered a variable expense) $11,000 12,000 units Total Revenue: $1,100,000 Total aquariums sold during the period: 10,000 units Operating Income under absorption costing (after non-production expenses): $224,400 Assume that the fixed costs were the same on a per-unit basis during the prior period.

Wet Pets Inc. makes Direct labor: Production manager salary: Factory rent: Equipment maintenance: Equipment depreciation: Production for the year: 6,600 hours @ $20 per hr $55,000 $26,400 $11,000 (considered a variable expense) $11,000 12,000 units Total Revenue: $1,100,000 Total aquariums sold during the period: 10,000 units Operating Income under absorption costing (after non-production expenses): $224,400 Assume that the fixed costs were the same on a per-unit basis during the prior period.

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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