Neef Corporation has provided the following data for its two most recent years of operation: Selling price
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Question:
Neef Corporation has provided the following data for its two most recent years of operation:
| | |
Selling price per unit | $ | 84 |
Manufacturing costs: | | |
Variable manufacturing cost per unit produced: | | |
Direct materials | $ | 12 |
Direct labor | $ | 5 |
Variable manufacturing overhead | $ | 4 |
Fixed manufacturing overhead per year | $ | 432,000 |
Selling and administrative expenses: | | |
Variable selling and administrative expense per unit sold | $ | 5 |
Fixed selling and administrative expense per year | $ | 61,000 |
|
| Year 1 | | Year 2 | ||
Units in beginning inventory | 0 | | 3,000 | ||
Units produced | 12,000 | | 9,000 | ||
Units sold | 9,000 | | 10,000 | ||
Units in ending inventory | 3,000 | | 2,0000 | ||
|
The net operating income (loss) under absorption costing in Year 2 is closest to?
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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