What is net income using variable costing

Reference no: EM132959732

Question: Benton Manufacturing produces snow shovels. The selling price per snow shovel is $31.00. There is no beginning inventory.

Costs involved in production are:
Direct material
$4.00Direct labor
4.00Variable manufacturing overhead
3.00Total variable manufacturing costs per unit
$11.00Fixed manufacturing overhead per year
$180,200

In addition, the company has fixed selling and administrative costs of $162,600 per year.

During the year, Benton produces 53,000 snow shovels and sells 48,270 snow shovels

What is net income using variable costing?

Reference no: EM132959732

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