A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (2,500 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $42,500 85,000 47,500 12,500 a. $5,250 Ob. $6,210 Oc. $5,760 Od. $5,625 Operating expenses: Variable operating expenses Fixed operating expenses If 75 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is $187,500 $15,000 4,500 19,500
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (2,500 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $42,500 85,000 47,500 12,500 a. $5,250 Ob. $6,210 Oc. $5,760 Od. $5,625 Operating expenses: Variable operating expenses Fixed operating expenses If 75 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is $187,500 $15,000 4,500 19,500
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 4E: On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and...
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