Question: A company's operating income was $74,500 using variable costing for a given period. Beginning and ending inventories for that period were 45,900 units and 50,900

A company's operating income was $74,500 using variable costing for a given period. Beginning and ending inventories for that period were 45,900 units and 50,900 units, respectively. Ignoring income taxes, if the fixed factory overhead application rate was $8.09 per unit, what would operating income have been using full costing?

A. $149,000.

B. Cannot be determined from the information given.

C. $114,950.

D. $32,025.

E. $101,800.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Question 4 A company had income of $55,500 using variable costing for a given period. Beginning and ending inventories for that period were 81,100 units and 91,100 units, respectively. If the fixed...

Can I please ask for solutions for these questions. thank you Question 33 A company had income of $50,000 using variable costing for a given period. Beginning and ending inventories for the period...

A company had income of $58,500 using variable costing for a given period. Beginning and ending inventories for that period were 81,700 units and 91,700 units, respectively. If the fixed overhead...

A company had income of $59,500 using variable costing for a given period. Beginning and ending inventories for that period were 81,900 units and 91,900 units, respectively. If the fixed overhead...

A company had income of $ 6 0 , 0 0 0 using variable costing for a given period. Beginning and ending inventories for that period were 8 2 , 0 0 0 units and 9 2 , 0 0 0 units, respectively. If the...

A company had income of $52,000 using variable costing for a given period. Beginning and ending inventories for that period were 80,400 units and 90,400 units, respectively. If the fixed overhead...

A company had income of $50,500 using variable costing for a given period. Beginning and ending inventories for that period were 80,100 units and 90,100 units, respectively. If the fixed overhead...

A company had income of $59,500 using variable costing for a given period. Beginning and ending inventories for that period were 81,900 units and 91,900 units, respectively. If the fixed overhead...

A company had income of $50,000 using variable costing for a given period. Beginning and ending inventories for that period were 65,000 units and 71,000 units, respectively. If the fixed overhead...

Determining income by absorption costing} A company had income of $\$ 50,000$ using variable costing for a given period. Beginning and ending inventories for the period were 13,000 units and 18,000...

The portfolio manager of a hedge fund believes that stock A is undervalued and stock B is overvalued. Currently their prices are $30 and $30, respectively. The portfolio manager of the fund buys 100...

Suppose that Kicker had the following sales and cost experience (in thousands of dollars) for May of the current year and for May of the prior year: In May of the prior year, Kicker started an...

5.40 Referring to the circuit shown in Fig. 5.77, determine V o in terms of V 1 and V 2. 100 ww 200 www V V 100 ww + 10 + 400 3

A 1.80-kg connecting rod from a car engine is pivoted about a horizontal knife edge as shown in Fig. 13.33. The center of gravity of the rod was located by balancing and is 0.200 m from the pivot....

An experiment is performed in deep space with two uniform spheres, one with mass 25.0 kg and the other with mass 100.0 kg. They have equal radii, r = 0.20 In. The spheres are released from rest with...

Three uniform spheres are fixed at the positions shown in Fig. 12.36. (a) What are the magnitude and direction of the force on a 0.0150-kg particle placed at P? (b) If the spheres are in deep outer...

Ten days after it was launched toward Mars in December 1998, the Mars Climate Orbiter spacecraft (mass 629 kg) was 2.87 X 106 k/n from the earth and traveling at 1.20 X 104 km/h restive to the earth....

Cavendish Experiment in the Cavendish balance apparatus shown in Fig. 12.4, suppose that m, = 1.10 kg, m2 = 25.0 kg, and the rod connecting the m, pairs is 30.0 cm long. If, in each pair, m, and m2...

Which of the following is an example of a team-level process gain: When a member learns a new task When two teammates argue and come up with a new solution neither could have thought of separately...

2. In this chapter, the reader should reflect on the following concepts: Idealized system design, analogue thinking, contrast principle, consistency principle, reciprocity principle, scarcity...

2. A Soviet invasion of Poland would lead to the severing of diplomatic relations between the United States and the Soviet Union.

1. Diplomatic relations between the United States and the Soviet Union would be severed in 1993 than that