Last Year, Walsh Company Manufactured 25,000 Units and Sold 22,000

question 80

Multiple Choice

Last year, Walsh Company manufactured 25,000 units and sold 22,000 units. Production costs were as follows:
$\begin{array}{|l|r|}\hline \text { Direct materials } & \$ 100,000 \\\hline \text { Direct labour } & 75,000 \\\hline \text { Variable manufacturing overhead } & 50,000 \\\hline \text { Fixed manufacturing overhead } & 75,000 \\\hline\end{array}$ Total sales were $440,000, total variable selling and administrative expenses were $110,000, and total fixed selling and administrative expenses were $45,000. There was no beginning inventory. Assume that direct labour is a variable cost.


-What was the operating income under variable costing?

• A) $2,000.
• B) $9,000.
• C) $12,000.
• D) $21,000.

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Definitions:

Order Accuracy

The degree to which completed orders correctly match the initial specifications or requests in terms of quantity, type, and quality.

Customer Order Fulfillment

The process of receiving, processing, and delivering orders to customers, ensuring their requirements are met timely and accurately.

Order Accuracy

The rate at which orders are filled correctly, reflecting the effectiveness of a company's picking and shipping processes.

Due Date Fulfillment

The process of completing a task, job, or order by its specified due date, ensuring timely delivery to customers.