Harris Corporation produces a single product. Last year, Harrismanufactured 27,970 units and sold 22,200 units. Production costsfor the year were as follows:
Fixed manufacturingoverhead $335,640 Variablemanufacturing overhead $240,542 Direct labor $131,459 Directmaterials $234,948
Sales were $1,043,400, for the year, variable selling andadministrative expenses were $113,220, and fixed selling andadministrative expenses were $198,587. There was no beginninginventory. Assume that direct labor is a variable cost.
Under variable costing, thecompany's net operating income for the year would be:
A $34,043 lower than under absorption costing
B $34,043 higher than under absorption costing
C $69,240 higher than under absorption costing
D $69,240 lower than under absorption costing
Harris Corporation produces a single product. Last year, Harrismanufactured 27,970 units and sold 22,200 units. Production costsfor the year were as follows:
| Fixed manufacturingoverhead | $335,640 |
| Variablemanufacturing overhead | $240,542 |
| Direct labor | $131,459 |
| Directmaterials | $234,948 |
Sales were $1,043,400, for the year, variable selling andadministrative expenses were $113,220, and fixed selling andadministrative expenses were $198,587. There was no beginninginventory. Assume that direct labor is a variable cost. |
| Under variable costing, thecompany's net operating income for the year would be: |
A $34,043 lower than under absorption costing
B $34,043 higher than under absorption costing
C $69,240 higher than under absorption costing
D $69,240 lower than under absorption costing
Related questions
The Clyde Corporation's variable expenses are 40% of sales.Clyde Corporation is contemplating an advertising campaign thatwill cost $28,000. If sales increase by $78,000, the company's netoperating income will increase by: |
$3,200
$31,200
$18,800
$63,600
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Deboer Company, which has only one product, has provided thefollowing data concerning its most recent month of operations: |
| Selling price | $161 |
| Units in beginninginventory | 50 |
| Units produced | 1,550 |
| Units sold | 1,580 |
| Units in endinginventory | 20 |
| Variable costs perunit: | |
| Directmaterials | $53 |
| Direct labor | $30 |
| Variablemanufacturing overhead | $7 |
| Variable selling andadministrative | $12 |
| Fixed costs: | |
| Fixed manufacturingoverhead | $15,500 |
| Fixed selling andadministrative | $39,500 |
| What is the total period costfor the month under the variable costing approach? |
$55,000
$73,960
$58,460
$15,500
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
HarrisCorporation produces a single product. Last year, Harrismanufactured 32,210 units and sold 26,700 units. Production costsfor the year were as follows: |
| Fixed manufacturingoverhead | $418,730 |
| Variablemanufacturing overhead | $251,238 |
| Direct labor | $157,829 |
| Directmaterials | $241,575 |
Sales were $1,241,550, for the year, variable selling andadministrative expenses were $138,840, and fixed selling andadministrative expenses were $199,702. There was no beginninginventory. Assume that direct labor is a variable cost. |
The contribution margin per unit would be: (Do not roundintermediate calculations.) |
$26.30 per unit
$16.80 per unit
$22.80 per unit
$21.10 per unit
