Variable selling and admin expense $152,000 Fixed selling and admin expense $133,000 Net operating income $180,000 Question 4.4. (TCO D) The Hampton Company produces and sells a single product. The following data refer to the year just completed. Selling price $450 Units in beginning inventory 0 Units produced 25,000 Units sold 22,000 Variable costs per unit: Direct materials $150 Direct labor $75 Variable manufacturing overhead Variable selling and admin $15
$25
Fixed costs: Fixed manufacturing overhead $275,000 Fixed selling and admin $200,000 Required: Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. Prepare an income statement for the year using absorption costing. Prepare an income statement for the year using variable costing. (Points : 30) Extra questions ===============================================
ACCT 505 Midterm Exam (New) Set 2
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