Last Year, Brunkow Corporation's Variable Costing Net Operating Income Was

question 68

Essay

Last year, Brunkow Corporation's variable costing net operating income was $93,500 and ending inventory increased by 800 units. Fixed manufacturing overhead cost per unit was $7.
Required:
Determine the absorption costing net operating income for last year. Show your work!

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Definitions:

March

The third month of the year in the Gregorian calendar, often associated with financial and performance reporting for the first quarter.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, valued at the standard labor rate.

February

The second month in the Gregorian calendar, recognized for its 28 days in regular years and 29 days during leap years.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead based on hours worked and the standard cost of variable overhead for the actual hours worked.