What is the operating income under variable costing

Assignment Help Accounting Basics
Reference no: EM132097207

Question - Triple M Company had the following data for the month:

Variable costs per unit:


Direct materials

$4.00

Direct labour

3.20

Variable overhead

1.00

Variable selling expenses

0.40

Fixed overhead is $4,000 per month, which is applied to production on the basis of normal activity of 2,000 units. During the month, 2,000 units were produced. Loring started the month with 300 units in beginning inventory, with unit product cost equal to this month's unit product cost. A total of 2,100 units were sold during the month at price of $14 per unit. Selling and administrative expense for the month, all fixed, totalled $3,600. What is the operating income under variable costing?

($540)

$3,540

$3,740

$7,980

Reference no: EM132097207

Questions Cloud

Compute mary cost recovery deduction : On May 28, 2015, Mary purchased and placed in service a new $20,000 car. Compute Mary's cost recovery deduction and any cost recovery recapture in 2016
Define interim audit testing : Define interim audit testing. Why does an auditor do it? What types of audit work are normally accomplished in the interim period(s)
Calculate the initial cash outlay : Assuming that these cash inflows satisfy exactly BackInSoon's required rate of return of 8 percent, calculate the initial cash outlay
What is greenlandic pull''s total market value : Their preferred stock has a book value of $500,000, is currently trading at $90, and earns a dividend of $3.00. Their tax rate is 21%.
What is the operating income under variable costing : Selling and administrative expense for the month, all fixed, totalled $3,600. What is the operating income under variable costing
What is the value of the ending inventory : The following information pertains to Mayberry Corporation: Beginning inventory 1,000 units. What is the value of the ending inventory
What pension liability should this company report : On January 1, Year One, a company started a defined benefit pension plan for its employees. What pension liability should this company report on its December
Determine bob realized and recognized gain on the exchange : Like-Kind Exchange: Related Parties. Bob owns a duplex used as rental property. Determine Bob realized and recognized gain on the exchange
What is the expected return on portfolio : Water Corporation, with an expected return of 18%; and $4,000 to buy 400 shares in Beach Corporation, with an expected return of 28%.

Reviews

Write a Review

Accounting Basics Questions & Answers

  List some of its production processing steps

Sturdy Packaging makes cardboard shipping cartons in a single operation. This period, Sturdy purchased $125,000 in raw materials.

  Monroe company received the balance due

On March 6, Churchill Company returned $120,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $90,000.

  Compute the sales price variance and sales volume variance

Comp Wiz sells computers. During May 2015, it sold 600 computers at a $900 average price each. Compute the sales price variance and sales volume variance

  What information does smith llp need to obtain

What information does Smith LLP need to obtain about the EDP function when developing its audit plan for FFF

  Discuss depreciation as a tool for managing the life

ACC 305- Discuss depreciation as a tool for managing and evaluating the life and utility of assets of the firm. What are the methods and under what conditions would each method be used and applied?

  Calculating the market value and profitability

The paper and forest products industry is dominated by large integrated manufacturers. According to data from the Census of Manufacturers, roughly 50% of industry output comes from giant plants with more than 500 employees. This is despite the fac..

  How te distributions are taxed to lily grace and christina

Lilly, Grace, and Christina are 20%, 20%, and 60% owners respectively of Widget Corp. Explain how the distributions are taxed to Lily, Grace, and Christina.

  You are in the role of a consultant with ten years experienc

You are in the role of a consultant with ten years experience in the health care insurance industry. A group of 20 doctors are considering forming a new medical group and have asked you to prepare a report on whether they should build a facility in a..

  Analyse the costs of the two sources of finance

Analyse the costs of the two sources of finance under consideration with reference to. Explain the importance of financial planning for Clariton Antiques Ltd.

  What is the difference in the present value

What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

  Explain what is meant by a significant risk

Describe the auditors' general approach to such risk assessment. Explain what is meant by a significant risk

  Opening a law office in a large metropolitan area

Steven Clark and two of his colleagues are considering opening a law office in a large metropolitan area that would make inexpensive legal services available to those who could not otherwise afford services

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd