Peak manufacturing produces snow blowers the selling price, Ask an Expert

Accounting

Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are as follows.

Direct material per unit: $20
Direct labor per unit: 12
Variable manufacturing overhead per unit: 10
Fixed manufacturing overhead per year: $148,500

In addition, the company has fixed selling and administrative costs of $150,000 per year.During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much is net income, using full costing?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9961071

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