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What was Indiana Corporation’s net operating income for the year using variable costing?

05 / 03 / 2018 Assignment

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Indiana Corporation produces a
single product that it sells for $9 per unit. During the first year of
operations, 100,000 units were produced, and 90,000 units were sold.
Manufacturing costs and selling and administrative expenses for the year were
as follows:


Fixed Costs

Variable Costs

Raw materials


$1.75
per unit produced

Direct labor


$1.25
per unit produced

Factory overhead

$100,000

$0.50
per unit produced

Selling and administrative

$70,000

$0.60
per unit
sold

What was Indiana Corporation’s net
operating income for the year using variable costing?


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