Question

For the year ended December 31, 20x5, Davis Corporation has the following records of its costs:...

For the year ended December 31, 20x5, Davis Corporation has the following records of its costs: Direct materials used $580352 Direct labour 166229 Variable manufacturing overhead 78568 Fixed manufacturing overhead 101036 Selling and administrative costs (fixed) 144468 Davis produced 123494 units and sold 106947 units at $14 in 20x6. There were no beginning inventories. If Davis uses variable costing, what is the operating income for the year ended December 31, 20x6? Select one: a. $426605 b. $537167 c. $517167 d. $550705

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Answer
Total variable cost of production =580352+166229+78568 $           825,149
Variable cost of goods sold = 825149*106947/123494 $           714,587
Sales = 106947*14 $        1,497,258
Contribution margin $           782,671
Less: Fixed costs = 101036+144468 $           245,504
Operating income $           537,167
Answer: Option [B] $537,167
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Lenart Corporation has provided the following data for its two most recent years of operation:...
1. Lenart Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 6 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 70,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 6 Fixed selling and administrative expense per year $ 83,000 Year 1 Year 2 Units in beginning inventory 0 1,000 Units produced during...
Baraban Corporation has provided the following data for its most recent year of operation: Selling price...
Baraban Corporation has provided the following data for its most recent year of operation: Selling price per unit $ 47 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 10 Direct labor $ 6 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 130,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 63,000 Units in beginning inventory 0 Units produced during the...
Cahalane Corporation has provided the following data for its two most recent years of operation: Selling...
Cahalane Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 91 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 432,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 78,000 Year 1 Year 2 Units in beginning inventory...
Wu Equipment Company manufactures and distributes industrial air compressors. The following data are available for the...
Wu Equipment Company manufactures and distributes industrial air compressors. The following data are available for the year ended December 31, 2020. The company had no beginning inventory. In 2020, it produced 1,470 units but sold only 1,220 units. The unit selling price was $4,410. Costs and expenses were as follows: Variable costs per unit Direct materials $750 Direct labour 1,360 Variable manufacturing overhead 200 Variable selling and administrative expenses 70 Annual fixed costs and expenses Fixed manufacturing overhead $1,200,000 Selling...
1: Gabuat Corporation, which has only one product, has provided the following data concerning its most...
1: Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 138 Units in beginning inventory 0 Units produced 2,600 Units sold 2,310 Units in ending inventory 290 Variable costs per unit: Direct materials $ 49 Direct labor $ 27 Variable manufacturing overhead $ 6 Variable selling and administrative expense $ 6 Fixed costs: Fixed manufacturing overhead $36,400 Fixed selling and administrative expense $13,860 The total gross margin...
Neef Corporation has provided the following data for its two most recent years of operation: Selling...
Neef Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 84 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 5 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 432,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory...
Hatfield Corporation, which has only one product, has provided the following data concerning its most recent...
Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $123 Units in beginning inventory 0 Units produced 6,400 Units sold 6,100 Units in ending inventory 300 Variable costs per unit: Direct materials $45 Direct labor $30 Variable manufacturing overhead $1 Variable selling and administrative $8 Fixed costs: Fixed manufacturing overhead $140,800 Fixed selling and administrative $91,500 What is the net operating income for the month under variable costing?
Farron Corporation, which has only one product, has provided the following data concerning its most recent...
Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $144 Units in beginning inventory 0 Units produced 9,350 Units sold 8,950 Units in ending inventory 400 Variable costs per unit: Direct materials $26 Direct labor $68 Variable manufacturing overhead $14 Variable selling and administrative $18 Fixed costs: Fixed manufacturing overhead $140,250 Fixed selling and administrative $9,600 What is the net operating income for the month under absorption costing?
Mahugh Corporation, which has only one product, has provided the following data concerning its most recent...
Mahugh Corporation, which has only one product, has provided the following data concerning its most recent month of operations:      Selling price $ 186   Units in beginning inventory 0   Units produced 3,690   Units sold 3,120   Units in ending inventory 570   Variable costs per unit:   Direct materials $ 56   Direct labor $ 52   Variable manufacturing overhead $ 8   Variable selling and administrative $ 18   Fixed costs:   Fixed manufacturing overhead $ 121,770   Fixed selling and administrative $ 9,360 QUESTION: Prepare an income...
Hadley Corporation, which has only one product, has provided the following data concerning its most recent...
Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 196 Units in beginning inventory 100 Units produced 1,680 Units sold 900 Units in ending inventory 880 Variable costs per unit: Direct materials $ 94 Direct labor $ 35 Variable manufacturing overhead $ 6 Variable selling and administrative expense $ 8 Fixed costs: Fixed manufacturing overhead $ 20,160 Fixed selling and administrative expense $ 20,700 What is the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT