Andy's Water Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year: Direct labor: Production manager salary: 12,000 hours @ $20 per hr. $100,000 $48,000 Factory rent: Equipment maintenance: $20,000 (considered a variable expense) Equipment depreciation: Production for the year: Total Revenue: Total aquariums sold during the period: $20,000 12,000 units $2,000,000 15,000 units Operating Income under variable costing (after non-production expenses): $408,000 Assume that the fixed costs were the same on a per-unit basis during the prior period. What would Operating Income be under absorption costing? (Round per-unit costs to the nearest cent.) Select one: O a. None of these options are correct. о b. $366,000 O c. $454,980 O d. $361,020 0 e. $450,000 https://mybusinesscourse.com/platform/

Andy's Water Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year: Direct labor: Production manager salary: 12,000 hours @ $20 per hr. $100,000 $48,000 Factory rent: Equipment maintenance: $20,000 (considered a variable expense) Equipment depreciation: Production for the year: Total Revenue: Total aquariums sold during the period: $20,000 12,000 units $2,000,000 15,000 units Operating Income under variable costing (after non-production expenses): $408,000 Assume that the fixed costs were the same on a per-unit basis during the prior period. What would Operating Income be under absorption costing? (Round per-unit costs to the nearest cent.) Select one: O a. None of these options are correct. о b. $366,000 O c. $454,980 O d. $361,020 0 e. $450,000 https://mybusinesscourse.com/platform/

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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