Star Services, Inc., a manufacturer of telescopes, began operations on October 1 of the current year. During this time, the company produced 50,000 units and sold 35,000 units at a sales price of $500 per unit. Cost information for this year is shown below.
Production Costs:
Direct materials ...$85 per unit
Direct Labor ...$65 per unit
Variable overhead ...$200,000 in total
Fixed overhead ...$350,000 in total
Non-production costs:
Variable selling and administrative ...$90,000 in total
Fixed selling and administrative ...$500,000 in total
Given the Star Services Inc. data, what is the net income using variable costing?$18,670,000
$18,774,000
$16,360,000
$11,274,000
$11,170,000