Durn Company incurred the following costs while producing 55

Durn Company incurred the following costs while producing 550 units: direct materials, S5 per unit direct labor, $22 per unit, variable manufacturing overhead, 316 per unit, total fixed manufacturingered costs, $9,900, variabls selling and administrative costs, $3 per unit, total fixed selling and admirnistrati inventories. ve costs, $8,600. There are no beginning What is the operating income using variable costing if 380 units are sold for S110 each? O A. $20,360 O B. $22.200 O C. $35,720 D. $19.220

Solution

operating income using variable costin sales (380*140)= 53200 less: variable cost of goods sold 380*(5+22+16) 16340 Variable selling & adm cost (380*3) 1140 contribution margin 35720 Fixed expenses fixed manufacturing oh costs 9,900 Fixed selling & adm cost 6,600 16,500 net operating income 19,220 answer answer option d) $19,220