Zulu reported $60,000 of income for the year by using absorption costing. The company had no beginning inventory, planned and actual production of 20,000 units, and sales of 19,000 units. Standard variable manufacturing costs were $22 per unit, and total budgeted fixed manufacturing overhead was $150,000. If there were no variances, what would be the income under variable costing?

Zulu reported $60,000 of income for the year by using absorption costing. The company had no beginning inventory, planned and actual production of 20,000 units, and sales of 19,000 units. Standard variable manufacturing costs were $22 per unit, and total budgeted fixed manufacturing overhead was $150,000. If there were no variances, what would be the income under variable costing?

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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