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Badoni Corporation has provided the following data for its two most recent years of ...

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Badoni Corporation has provided the following data for its two most recent years of ...

Badoni Corporation has provided the following data for its two most recent years of operation:

Selling price per unit	$ 85
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials	$ 10
Direct labor	$ 6
Variable manufacturing overhead	$ 4
Fixed manufacturing overhead per year	$96,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold	$ 5
Fixed selling and administrative expense per year	$77,000

	Year 1	Year 2
Units in beginning inventory	0	1,000
Units produced during the year	8,000	6,000
Units sold during the year	7,000	3,000
Units in ending inventory	1,000	4,000

The net operating income (loss) under variable costing in Year 2 is closest to:

▸ $180,000

▸ $195,000

▸ $59,000

▸ $7,000

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

Read 189 times

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