Wasilko Corporation produces and sells one product.
A.The budgeted selling price per unit is $114.Budgeted unit sales for February is 9,900 units.
B.Each unit of finished goods requires 6 pounds of raw materials.The raw materials cost $4.00 per pound.
C.The direct labor wage rate is $24.00 per hour.Each unit of finished goods requires 2.4 direct labor-hours.
D.Manufacturing overhead is entirely variable and is $9.00 per direct labor-hour.
E.The variable selling and administrative expense per unit sold is $1.60.The fixed selling and administrative expense per month is $70,000.
The estimated net operating income (loss)for February is closest to:

Question

Quizplus · Accepted Answer

The estimated unit product cost is computed as follows:
 11ea7761_17ac_e098_81a5_47c1222f8173_TB2580_00 The estimated selling and administrative expense for February is computed as follows:
 11ea7761_17ac_e099_81a5_6fe6b559f764_TB2580_00 The estimated net operating income for February is computed as follows:
 11ea7761_17ac_e09a_81a5_c76c50ae70ed_TB2580_00

Wasilko Corporation Produces and Sells One Product