Reference no: EM132520496
Question - Krepps Corporation produces a single product. Last year, Krepps manufactured 34,930 units and sold 29,900 units. Production costs for the year were as follows:
Direct materials $265,468
Direct labor $171,157
Variable manufacturing overhead $300,398
Fixed manufacturing overhead $454,090
Sales totaled $1,330,550 for the year, variable selling and administrative expenses totaled $170,430, and fixed selling and administrative expenses totaled $261,975. There was no beginning inventory. Assume that direct labor is a variable cost.
Under variable costing, compute the company's net operating income for the year?
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: Sales totaled $1,330,550 for the year, variable selling and administrative expenses totaled $170,430, compute the company's net operating income for the year
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