Budgeting and Standard Costing – Quiz
(TCO 5) The following information relates to Vice Versa Ventures for calendar year 20XX, the company’s first year of operations:
|
Units produced |
20,000 |
|
Units sold |
17,000 |
|
Selling price per unit |
$35 |
|
Direct material per unit |
$5 |
|
Direct labor per unit |
$5 |
|
Variable manufacturing overhead per unit |
$2 |
|
Variable selling cost per unit |
$3 |
|
Annual fixed manufacturing overhead |
$160,000 |
|
Annual fixed selling and administrative expenses |
$80,000 |
(a) Prepare an income statement using full costing.
(b) Prepare an income statement using variable costing.