Favaz began business at the start of this year and had the following costs: variable manufacturing cost
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Question:
Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $7; fixed manufacturing costs, $56,000; variable selling and administrative costs per unit, $1; and fixed selling and administrative costs, $210,000. The company sells its units for $47 each. Additional data follow:
Planned production in units | 10,000 |
Actual production in units | 10,000 |
Number of units sold | 7,500 |
There were no variances.
The income (loss) under variable costing is:
Multiple Choice
$(6,500).
$26,500.
$37,500.
$40,500.
None of the answers is correct.
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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