Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 8,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: 2018 2019 Units sold 6,500 9,000 Units produced 8,000 8,000 Costs: Variable factory overhead per unit $ 0.20 $ 0.20 Fixed factory overhead $ 1,200 $ 1,200 Variable marketing per unit $ 0.30 $ 0.30 Fixed Selling and Administrative $ 320 $ 320 Variable costing operating income for 2018 is calculated to be: Multiple Choice $655. $1,180. $1,030. $149. $430.
Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 8,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: 2018 2019 Units sold 6,500 9,000 Units produced 8,000 8,000 Costs: Variable factory overhead per unit $ 0.20 $ 0.20 Fixed factory overhead $ 1,200 $ 1,200 Variable marketing per unit $ 0.30 $ 0.30 Fixed Selling and Administrative $ 320 $ 320 Variable costing operating income for 2018 is calculated to be: Multiple Choice $655. $1,180. $1,030. $149. $430.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 8,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations:
| 2018 | 2019 | |||||
| Units sold | 6,500 | 9,000 | ||||
| Units produced | 8,000 | 8,000 | ||||
| Costs: | ||||||
| Variable factory |
$ | 0.20 | $ | 0.20 | ||
| Fixed factory overhead | $ | 1,200 | $ | 1,200 | ||
| Variable marketing per unit | $ | 0.30 | $ | 0.30 | ||
| Fixed Selling and Administrative | $ | 320 | $ | 320 | ||
Variable costing operating income for 2018 is calculated to be:
Multiple Choice
-
$655.
-
$1,180.
-
$1,030.
-
$149.
-
$430.
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