Question

totalfwed manufacturing overhead costs, S860 Dangle Company cured the following costs while producing direct ma wa sing and ad veo 59 profesing and w e What is the operating income wing van costing # 370 units are sold for $200 each r unt dec 23 puta machung overheat $10 per un cost, 55200 There are no beginventones O A $42.200 OB 56.200 OC SM.750 OD MO

Answer 1

Ans: A$42,200 is correct Answer

Variable Costing
Calculation of Cost of Goods manufactured
Direct material	6
Direct labor	23
Variable manufacturing overhead	10
Cost of Goods manufactured	39
Sales (370 units*200)		74000
Less: Variable Expenses
Beginning Inventory	0
Add: Cost of goods manufactured (550 units*39)	21450
Less: Closing Inventory (180 units*45)	8100
Variable cost of goods sold	14430
Variable selling and manufacturing expenses (370 units*9)	3330	17760
Contribution margin (Sales-Total expenses)		56240
Less: Fixed Expenses
Fixed manufacturing overhead	8840
Fixed selling and manufacturing expenses	5200	14040
Net operating income		42200