What is the net operating income for the month under variable costing?

A) $3,800
B) $(6,100)
C) $3,900
D) $7,700

Question

What is the net operating income for the month under variable costing?A) $3,800B) $(6,100)C) $3,900D) $7,700

Dannier Manso · Accepted Answer

Final Answer : A, Explanation :      Reference: CHO7-Ref12Beach Corporation, which produces a single product, budgeted the following costs for its first year of operations.These costs are based on a budgeted volume of 30,000 towels produced and sold:   During the first year of operations, Beach Corporation actually produced 30,000 towels but only sold 24,000 towels.Actual costs did not fluctuate from the cost behavior patterns described above.The 24,000 towels were sold for $16 per towel.Assume that direct labor is a variable cost.

What is the net operating income for the month under variable costing?

A) $3,800
B) $(6,100)
C) $3,900
D) $7,700

Definitions

Learning Objectives

Learning Objectives

Related questions

What is the net operating income for the month under variable costing?A) $3,800B) $(6,100) C) $3,900D) $7,700

Definitions

Learning Objectives

Learning Objectives

Related questions

What is the net operating income for the month under variable costing?

A) $3,800
B) $(6,100)
C) $3,900
D) $7,700