Question

Janos Corporation, which has only one product, has provided the following data concerning its most recent month of operations: What is the net operating income for the month under absorption costing

Answer 1

Answer:

$12,200

Explanation:

Note: Question is attached as picture below

      Under absorption costing net operating income  

Details                                                                        Amount

Sales per unit                                                              $111

Less: Variable cost

Direct materials                                                          ($29)

Direct labors                                                               ($30)

Variable manufacturing overheads                           ($4)

Variable selling and administration overheads        ($9)

Contribution per unit = Sales less variable cost          $39

Contribution in value ($39 * 2,200 units)                    $85,800

Less: Fixed manufacturing over heads                        ($34,000)

Fixed selling and admin over heads                            ($39,600)

Net Operating Income                                                  $12,200