Question

CBB Inc. makes multi-colored glass lens for the astrological telescope industry and incurred the following: Units...

CBB Inc. makes multi-colored glass lens for the astrological telescope industry and incurred the following:

Units Produced

20,000

Units Sold

16,000

Unit Sales Price $

190

Manufacturing Cost Per Unit
Direct Material $

20

Direct Labor $

20

Variable Manufacturing Overhead $

16

Fixed Manufacturing Overhead ($360,000/20,000) = $

18

Full Manufacturing Cost Per Unit $

74

Nonmanufacturing Costs
Variable Selling Expenses $

104,000

Fixed General and Administrative Costs $

92,000


Income for CBB Inc's under variable costing?

Multiple Choice

  • $1,588,000

  • $1,660,000

  • $1,231,000

  • $1,184,000

Homework Answers

Answer #1

Solution:

Correct answer will be Option $1,588,000.

Note:

Full Fixed costs will be taken in consideration for calculating Net income.

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