Foxtrot reported $65,000 of income for the year by using absorption costing. The company had no beginning inventory, planned and actual production of 20,000 units, and sales of 18,000 units. Standard variable manufacturing costs were $20 per unit, and total budgeted fixed manufacturing overhead was $100,000. If there were no variances, income under variable costing would be: $75,000. $65,000. $15,000. $115,000. $55,000.

Income under variable=$55,000

Option D is correct ( $55,000.)

Explanation:

Lets first calculate the total cost per unit:

Total cost per unit=

Total Cost per unit=

Total cost per unit=$25

Sales Revenue=Total cost per unit*units sold+Income using absorption costing

Sales Revenue=$25*18,000+$65,000

Sales Revenue=$515,000

Cost of goods sold= Standard variable cost per unit*units sold

Cost of goods sold=$20*18,000

Cost of goods sold=$360,000

Income under variable=Sales Revenue-Cost of goods sold-fixed manufacturing overhead

Income under variable=$515,000-$360,000-$100,000

Income under variable=$55,000

Option D is correct ( $55,000.)

1.332 × 10-3

Step-by-step explanation:

you move the decimal point to the right until there's only one digit on the left side of it. the exponent is 3 because that's the number of places you moved the decimal point, and it's negative because you moved it to the right. if you move the decimal to the left it is positive, to the right is negative :)