Multiple Choice
Hahn Corporation
Hahn Corporation produces a single product that sells for $7.00 per unit.Standard capacity is 100,000 units per year;100,000 units were produced and 80,000 units were sold during the year.Manufacturing costs and selling and administrative expenses are presented below.
There were no variances from the standard variable costs.Any under- or overapplied overhead is written off directly at year-end as an adjustment to cost of goods sold.
| Fixed costs | Variable costs | |
| Direct material | $0 | $1.50 per unit produced |
| Direct labor | 0 | 1.00 per unit produced |
| Manufacturing overhead | $150,000 | 0.50 per unit produced |
| Selling & Administration expense | 80,000 | 0.50 per unit sold |
Hahn Corporation had no inventory at the beginning of the year.
Refer to Hahn Corporation.What is the net income under variable costing?
A) $50,000
B) $80,000
C) $90,000
D) $120,000
Correct Answer:
Verified
Correct Answer:
Verified
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