Farris Corp operations: Selling price its in beginning inventory Units produced Units sold $96 O 8,750 8,350 ts in ending inventory 400 Variable costs per unit: Direct materials Direct labor turing overhead $14 $56 $2

Cornerstones of Cost Management (Cornerstones Series)
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Chapter18: Pricing And Profitability Analysis
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Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...
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Farris Corporation, which has only one product, has provided the following data concerning its most recent month of
operations:
Selling price
Units in beginning inventory
Units produced
Units sold
$96
O
8,750
8,350
Units in ending inventory 400
Variable costs per unit:
Direct materials
$14
Direct labor
$56
Variable manufacturing overhead
$2
ble selling and administrative expense $ 6
Fixed costs:
Fixed manufacturing overhead
$131,250
selling and administrative expense $8,400
The net operating income for the month under absorption costing?
Transcribed Image Text:Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold $96 O 8,750 8,350 Units in ending inventory 400 Variable costs per unit: Direct materials $14 Direct labor $56 Variable manufacturing overhead $2 ble selling and administrative expense $ 6 Fixed costs: Fixed manufacturing overhead $131,250 selling and administrative expense $8,400 The net operating income for the month under absorption costing?
Units in beginning inventory
Units produced
Units sold
8,750
8,350
Units in ending inventory 400
Variable costs per unit:
Direct materials
Direct labor
Variable manufacturing overhead
$14
$56
$2
Variable selling and administrative expense $ 6
Fixed costs:
Fixed manufacturing overhead
$131,250
Fixed selling and administrative expense $ 8,400
What is the net operating income for the month under absorption costing?
$10,650
$16,650
O $6,000
O $18.150
Transcribed Image Text:Units in beginning inventory Units produced Units sold 8,750 8,350 Units in ending inventory 400 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead $14 $56 $2 Variable selling and administrative expense $ 6 Fixed costs: Fixed manufacturing overhead $131,250 Fixed selling and administrative expense $ 8,400 What is the net operating income for the month under absorption costing? $10,650 $16,650 O $6,000 O $18.150
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