Concept explainers
Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed
What is the operating income using variable costing if 450 units are sold for $100 each?
- a. $2,750
- b. $5,000
- c. $500
- d. $2,500
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