Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price$120? Units in beginning inventory 0Units produced 9050?Units sold 8650?Units in ending inventory 400? Variable costs per unit: Direct materials$20?Direct labor$62?Variable manufacturing overhead$8?Variable selling and administrative expense$12?Fixed costs: Fixed manufacturing overhead$135,750?Fixed selling and administrative expense$9000?What is the net operating income for the month under variable costing?
A. $16,950
B. $6000
C. $(25,050)
D. $10,950
Answer: D
You might also like to view...
A business that purchases a product from another business to sell to customers is called a
a. service business; b. merchandising business; c. manufacturing business; d. nonprofit business; e. warehousing business.
A declarative sentence expresses surprise, disbelief, or deep feeling. It ends with an exclamation point
Indicate whether the statement is true or false
Which of the following is a non-point source of water pollution?
a. A pesticide runoff from farming operations b. Effluents released from a nuclear reactor c. Effluents discharged from a sewage treatment plant d. Discharges from a plastic manufacturing unit
When is a sample a better choice than a census?
a. When the population is changing over time. b. When taking the U.S. Census of the population. c. When some sampling error can be tolerated. d. When time is an important factor. e. Each of these is a reason for taking a sample rather than a census.