Swan Textiles Inc. produces and sells a decorative pillow for $103.00 per unit. In the first month
of operation, 2,300 units were produced and 1,900 units were sold. Actual fixed costs are the
same as the amount budgeted for the month. The fixed cost budget is based on the production of
2,300 units. Other information for the month includes:
Variable manufacturing costs
$24.00 per unitVariable marketing costs
$6.00 per unitFixed manufacturing costs
$14 per unitAdministrative expenses, all fixed
$19.50 per unit
Ending inventories:
Direct materials
0
WIP
0
Finished goods
400 units
What is the operating income using variable costing?
Question content area bottom
Part 1
A.
$112,100
B.
$61,650
C.
$138,700.
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Swan Textiles Inc. produces and sells a decorative pillow for $103.0.pdf
1. Swan Textiles Inc. produces and sells a decorative pillow for $103.00 per unit. In the first month
of operation, 2,300 units were produced and 1,900 units were sold. Actual fixed costs are the
same as the amount budgeted for the month. The fixed cost budget is based on the production of
2,300 units. Other information for the month includes:
Variable manufacturing costs
$24.00 per unitVariable marketing costs
$6.00 per unitFixed manufacturing costs
$14 per unitAdministrative expenses, all fixed
$19.50 per unit
Ending inventories:
Direct materials
0
WIP
0
Finished goods
400 units
What is the operating income using variable costing?
Question content area bottom
Part 1
A.
$112,100
B.
$61,650
C.
$138,700
