Reference no: EM132792376
Favaz began business at the start of this year and had the following costs:
variable manufacturing cost per unit, $10;
fixed manufacturing costs, $56,000;
variable selling and administrative costs per unit, $1; and
fixed selling and administrative costs, $224,000.
The company sells its units for $47 each. Additional data follow:
Planned production in units10,000
Actual production in units10,000
Number of units sold8,000
There were no variances.
Problem 1: The income (loss) under variable costing is:
Multiple Choice
Option 1: $(7,000).
Option 2: $8,000.
Option 3: $16,200.
Option 4: $19,200.
Option 5: None of the answers is correct.
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