Anderson Corporation Anderson Corporation has the following standard costs associated with the manufacture and sale of one of its products:
Refer to Anderson Corporation.Based on variable costing,the income before income taxes for the year was
A)$570,600.
B)$560,000.
C)$562,600.
D)$547,500.

Question

Anderson Corporation Anderson Corporation has the following standard costs associated with the manufacture and sale of one of its products:
 Refer to Anderson Corporation.Based on variable costing,the income before income taxes for the year was
A)$570,600. 
B)$560,000. 
C)$562,600. 
D)$547,500.

Quizplus · Accepted Answer

Using the formula for variable costing, we have:
Sales - Variable Costs - Fixed Costs = Income before taxes
$1,125,000 - ($750,000 + $212,500) - $25,900 = $137,600
Adding back fixed costs to get income before taxes: 
$137,600 + $425,000 = $562,600. 
Therefore, the income before income taxes for the year was $562,600.

Anderson Corporation Anderson Corporation Has the Following Standard Costs Associated