The company will continue to incur the total amount of its

Assignment Help Accounting Basics

Reference no: EM13588967

Diego Company manufactures one product that is sold for $81 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 52,000 units and sold 47,000 units.

Variable costs per unit:
Manufacturing:
Direct materials	$	20
Direct labor	$	20
Variable manufacturing overhead	$	4
Variable selling and administrative	$	6
Fixed costs per year:
Fixed manufacturing overhead	$	936,000
Fixed selling and administrative expenses	$	552,000

The company sold 35,000 units in the East region and 12,000 units in the West region. It determined that $260,000 of its fixed selling and administrative expenses is traceable to the West region, $210,000 is traceable to the East region, and the remaining $82,000 is a common fixed cost. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

What is the company's net operating income (loss) under variable costing? (Input the amount as a positive value.)

Reference no: EM13588967

Questions Cloud

You have been working at a local travel agency as a : you have been working at a local travel agency as a secretary. your agency has signed a contract with a local corporate

Skychefs inc prepares in-flight meals for a number of major : skychefs inc. prepares in-flight meals for a number of major airlines. one of the companys products is grilled salmon

In a computerized environment you learn about the : in a computerized environment you learn about the relationship between peachtree and the fundamental accounting

If we are just assuming the actual quantity of the product : if we are just assuming the actual quantity of the product is 840 kg and its standard market price is 48 which is to

The company will continue to incur the total amount of its : diego company manufactures one product that is sold for 81 per unit in two geographic regions-the east and west

Description of implementation logistics when and how will : consider the population in which the solution is intended the staff that will participate and the key contributors

On 31st march 2009 the total assets and external : on 31st march 2009 the total assets and external liabilities were 200000 and 6000 respectively. during the year the

Compute the total activity costs that would be assigned to : worley company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to

Fine pottery processors manufactures two products platters : fine pottery processors manufactures two products platters and tureens from a joint process. platters are allocated

User Account

All Pages