Question

Janos Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the net operating income for the month under absorption costing

Answer 1

$12,200

Step-by-step explanation:

Note: Question is attached as picture below

Under absorption costing net operating income

Details Amount

Sales per unit $111

Less: Variable cost

Direct materials ($29)

Direct labors ($30)

Variable manufacturing overheads ($4)

Variable selling and administration overheads ($9)

Contribution per unit = Sales less variable cost $39

Contribution in value ($39 * 2,200 units) $85,800

Less: Fixed manufacturing over heads ($34,000)

Fixed selling and admin over heads ($39,600)

Net Operating Income $12,200