Question

Item9 2 points Time Remaining 2 hours 55 minutes 49 seconds02:55:49 eBookItem 9Item 9 2 points Time Remaining 2 hours 55 minutes 49 seconds02:55:49 TB MC Qu. 6-143 Keyser Corporation, which has... Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 118 Units in beginning inventory 400 Units produced 2,100 Units sold 2,300 Units in ending inventory 200 Variable costs per unit: Direct materials $ 37 Direct labor $ 23 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 73,500 Fixed selling and administrative expense $ 29,900 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What is the net operating income for the month under variable costing?

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price $118

Units sold 2,300

Variable costs per unit:

Direct materials $37

Direct labor $23

Variable manufacturing overhead $3

Variable selling and administrative expense $5

First, we need to determine the total unitary variable cost:

Unitary variable cost= 37 + 23 + 3 + 5=$68

Variable cost income statement:

Sales= 2,300*118= 271,400

Total variable cost= 68*2,300= (156,400)

Total contribution margin= 115,000

Fixed manufacturing overhead= (73,500)

Fixed selling and administrative expense= (29,900)

Net operating income= 11,600