A business operated at 100% of capacity during its first month, with the following results: Sales (90
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Question:
A business operated at 100% of capacity during its first month, with the following results:
Sales (90 units) | | $90,000 |
Production costs (100 units): | | |
Direct materials | $40,000 | |
Direct labor | 20,000 | |
Variable factory overhead | 2,000 | |
Fixed factory overhead | 7,000 | 69,000 |
| | |
Operating expenses: | | |
Variable operating expenses | $ 8,000 | |
Fixed operating expenses | 1,000 | 9,000 |
What is the amount of the income from operations that would be reported on the variable costing income statement?
Related Book For
Accounting
ISBN: 978-1285743615
26th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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