Figure 2-11 Information from the records of the Cain Corporation for August 2011 was as follows:
*variable overhead is $205,000, fixed overhead is $200,000

-Refer to Figure 2-11.The variable product costs are
A) $ 969,000
B) $ 769,000
C) $ 764,000
D) $1,179,000

Question

Figure 2-11 Information from the records of the Cain Corporation for August 2011 was as follows:
 *variable overhead is $205,000, fixed overhead is $200,000
 
-Refer to Figure 2-11.The variable product costs are
A) $ 969,000 
B) $ 769,000 
C) $ 764,000 
D) $1,179,000

Quizplus · Accepted Answer

To calculate the variable product costs, we need to subtract the variable overhead from the total manufacturing costs.
Total manufacturing costs = variable costs + fixed costs
Therefore, variable costs = total manufacturing costs - fixed costs - variable overhead
Variable costs = $1,174,000 - $200,000 - $205,000
Variable costs = $769,000
The correct answer is B) $769,000.

Figure 2-11 Information from the Records of the Cain Corporation