Question

Red and White Company reported the following monthly data: Units produced 2,100 units Sales price $ 26 per unit Direct materials $ 2 per unit Direct labor $ 3 per unit Variable overhead $ 4 per unit Fixed overhead $ 7,980 in total What is Red and White's net income under variable costing if 990 units are sold and operating expenses are $11,900? Multiple Choice ($3,050) ($1,820) $1,168 $4,930 $8,850

Answer 1

Answer:

Under the variable costing fixed production overheads are treated as periodic costs and not included in closing stock. Amount $ Calculation Direct materials 1.00 Given Direct labor 2.

Explanation: