Writer One Inc Variable Costing Operating Income for 2018 Is Calculated to Be

question 19

Multiple Choice

Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 8,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: $\begin{array}{lcc} & 2018 & 2019 \\\text { Units sold } & 6,500 & 9,000 \\\text { Units produced } & 8,000 & 8,000\\\text { Costs: }\\\text { Variable factory overhead per unit } & \$ 0.20 & \$ 0.20 \\\text { Fixed factory overhead } & \$ 1,200& \$ 1,200 \\\text { Variable marketing per unit } & \$ 0.30& \$ 0.30 \\\text { Fixed Selling and Administrative } & \$ 320& \$ 320\end{array}$ Variable costing operating income for 2018 is calculated to be:

• A) $149.
• B) $430.
• C) $655.
• D) $1,030.
• E) $1,180.

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