10. SquareDeal Mfg manufactures tables and desks, which are sold in sets of 4 ch

Question

10. SquareDeal Mfg manufactures tables and desks, which are sold in sets of 4 chairs to a table to businesses, schools, and public facilities. They reported the following financial information for last year: Direct Labor Production Manager Salary Factory Rent Equipment Maintenance Equipment Depreciation Production for the year Total Revenue 20,000 hrs $15/hr $80,000 $60,000 $5,000 (considered a variable expense) $25,000 35,000 units $12,000,000 30,000 Total table and chair sets sold during the period Operating Income under absorption costing (after non-production expenses) $5,000,000 What would Operating Income be under variable costing? (Round per-unit costs to the nearest cent.) A. $4,756,350 B. $4,976,450 C. $5,025,235 D. $4,658,125

Explanation / Answer

Answer

B ) 4976450

net operating income absorping costing = 5000000

ending inventory fixed manufacturing = ( 30000 - 35000 ) * 4.71 = -23550

net operating income variable costing = 5000000 - 23550

= 4976450

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.