Determine the net income by variable costing


Response to the following problem:

Carr Company produces a single product. During the past year, Carr manufactured 26,160 units and sold 20,900 units. Production costs for the year were as follows:

Fixed manufacturing overhead $470,880

Variable manufacturing overhead $224,976

Direct labor $112,488

Direct materials $188,352

Sales totaled $971,850,

variable selling expenses totaled $108,680

and fixed selling and administrative expenses totaled $190,968.

There were no units in beginning inventory.

Assume that direct labor is a variable cost. Under variable costing, the net income for the year would be?

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Cost Accounting: Determine the net income by variable costing
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