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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
selling price $140
units in begining inventory 0units produces 1,200units sold 800units in ending inventory 400Variable cost per unit:direct materials $25direct labors $41variable manufacturing overhead $6variable selling and administrative $6Fixed cost:fixed manufacturing overhead $24,000fixed selling and administrative $12,000
- What is the net operating income for the month under variable costing?- make variable costong income statement.
Describe briefly the possible causes of: (i) the material usage variance, (ii) the labour rate variance, (iii) the sales volume profit variance.
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