Business, 28.07.2020 23:01 Savageboyn

Osawa, Inc., planned and actually manufactured 200,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $600,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $400,000. Osawa sold 120,000 units of product at $40 per unit. Required:

Osawa's 2017 operating income using variable costing is:

(a) $ 620,000,

(b) $ 340,000,

(c) $ 200,000,

(d) $ 560,000, or

(e) none of these.

Show supporting calculations. Begin by selecting the labels used in the variable costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step.

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Osawa, Inc., planned and actually manufactured 200,000 units of its single product in 2017, its firs...

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