Reference no: EM131727443

Problem - Betty DeRose, Inc. began its operations on January 1, 2018. Betty produces a single product and reported the following cost information for 2018 and 2019:

                                                2018               2019

Variable costs per unit:

Direct materials                         $15                 $19

Direct labor                               ?                     $16

Variable overhead                     $6                    $8

Variable selling                         $3                     $7

Fixed costs in total:

Fixed overhead                         ?                       $207,000

Fixed selling                             ?                       $108,000

In 2018, Betty produced 21,000 units and sold 14,000 units. In 2019, Betty produced 23,000 units and sold 27,000 units. The selling price per unit was $70 in both years.

Using absorption costing, Betty's 2018 net income was $287,000 and its finished goods inventory at December 31, 2018 totaled $301,000.

Using variable costing, Betty's 2018 gross profit was $448,000. Calculate the amount of fixed selling cost incurred in 2018. Do not use decimals in your answer.