Maurice Tutor

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Category > Accounting Posted 05 Aug 2017 My Price 4.00

Louise Wilow

I need detailed help with steps on how to solve. Please make sure to show the steps of getting the FMOH. Thank you in advance!

Two years ago, Louise Wilow started a company to manufacture and sell cell phone accessories. Below are her selected actual operating results for the first two years of operations (her cost structure and selling prices were the same in year 1 and year 2). She allocates her fixed manufacturing overhead costs to the number of units produced in each year.

 

Year 1

Year 2

Units produced

45,000

45,000

Units sold

42,000

46,000

Absorption costing net operating income

??

??

Variable costing net operating income

$ 63,000

$ 79,000

Fixed selling & admin. Expense

$ 15,000

$ 15,000

Q: What was the absorption costing net operating income in year 1 & year 2?

A. $ 79,000

B. $ 69,000               

C. $ 77, 000

D. $ 90, 000

E. None of the above

Answers

Maurice Tutor
(5)
Status NEW Posted 05 Aug 2017 12:08 AM My Price 4.00

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