A business operated at 100% of capacity during its first month and incurred the following costs: Production
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Question:
A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (10,000 units): | ||
Direct materials | $140,000 | |
Direct labor | 40,000 | |
Variable factory overhead | 20,000 | |
Fixed factory overhead | 4,000 | $204,000 |
Operating expenses: | ||
Variable operating expenses | $ 34,000 | |
Fixed operating expenses | 2,000 | 36,000 |
If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what is the amount of the manufacturing margin that would be reported on the variable costing income statement?
a.not reported
b.$104,000
c.$106,000
d.$140,000
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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