Walsh Company Produces a Single Product

question 133

Multiple Choice

Walsh Company produces a single product. Last year, the company manufactured 25,000 units and sold 22,000 units. Production costs were as follows: Sales totaled $440,000, variable selling and administrative expenses were $110,000, and fixed selling and administrative expenses were $45,000. There was no beginning inventory. Assume that direct labor is a variable cost.
-The net operating income under variable costing would be:

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

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