Wolanski Corporation has provided the following data for its most recent year of operations: Selling price per unit$48Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$11Direct labor$5Variable manufacturing overhead$5Fixed manufacturing overhead per year$110,000Selling and administrative expenses: Variable selling and administrative expense per unit sold$4Fixed selling and administrative expense per year$71,000 Units in beginning inventory 0Units produced during the year 11,000Units sold during the year 8,000Units in ending inventory 3,000The net operating income (loss) under variable costing is closest to:
A. $33,000
B. $216,000
C. $3,000
D. $184,000
Answer: C
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List and briefly describe the three major methods used to estimate the size of a sales force
What will be an ideal response?
Alltech Company maintains a separate accounts receivable account for each customer. On June 18, Alltech provides $6100 of services on account to customer Anthony and $1000 of services on account to customer Walker. How will these two transactions affect the control and subsidiary accounts?
A) The control account, Accounts Receivable, will be increased with a debit of $7100. B) The individual customer accounts in the subsidiary ledger will be increased with credits. C) After posting these transactions, the sum of the balances in subsidiary accounts receivable will not equal the control account balance. D) The control account will have a debit balance and the subsidiary accounts will have a credit balance. This keeps the accounting equation in balance.
Answer the following statements true (T) or false (F)
1. To create goal congruence, some firms prefer calculating ROI based on the gross book value of asset. 2. If upper management uses a short time frame to calculate ROI and RI, division managers have an incentive to take actions that will lead to an immediate increase in these measures 3. If managers are measured on short-term financial performance only, they may not introduce new products 4. The limitations of financial performance measures reinforce the importance of the balanced scorecard. 5. The transfer price is the transaction amount of one unit of goods when the transaction occurs between the company and its customers.
When graphing cost-volume-profit data on a CVP chart:
A. Units are plotted on the vertical axis; costs on the horizontal axis. B. Both units and costs are plotted on the horizontal axis. C. Data points always represent expected future points. D. Both units and cost are plotted on the vertical axis. E. Units are plotted on the horizontal axis; costs on the vertical axis.