Buckbee Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Variable costs per unit: Direct materials$97Fixed costs per year: Direct labor$629,000Fixed manufacturing overhead$2,849,000Fixed selling and administrative expenses$1,056,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 37,000 units and sold 32,000 units. The company's only product is sold for $261 per unit.Assume that the company uses a variable costing system that assigns $17 of direct labor cost to each unit that is produced. The net operating income under this costing system is:
A. $1,184,000
B. $799,000
C. $714,000
D. $229,000
Answer: B
Business
You might also like to view...
Book value indicates the rights that stockholders have, based on recorded values, to the net assets in the event of liquidation
a. True b. False Indicate whether the statement is true or false
Business
Identify the following molecule:
A. cholesterol B. alcohol C. carbohydrate D. hydrocarbon E. amino acid
Business
Core applications are
a. sales and distribution b. business planning c. shop floor control and logistics d. all of the above
Business
A company had net sales of $30,300 and ending accounts receivable of $3900 for the current period. Its days' sales uncollected equals: (Use 365 days a year.)
A. 7.77 days. B. 58.18 days. C. 38.98 days. D. 46.98 days. E. 62.28 days.
Business