How to actual production conformed


Chicago began business at the start of the current year. The company planned to produce 25,000 units, and actual production conformed to expectations. Sales totaled 22,000 units at $30 each. Costs incurred were:

  • Fixed Manufacturing Over Head $150,000
  • Fixed Selling & Adminstration Cost $100,000
  • Variable Manufacturing Cost Per Unit $8.00
  • Variable Selling&Adminstrative per Unit 2.00

If there were no variances, the company's absorption-costing net income would be:
A. $190,000.
B. $202,000.
C. $208,000.
D. $220,000.
E. some other amount.

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Accounting Basics: How to actual production conformed
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