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Unformatted text preview: group study SI Violins-by-Hannah produces student-grade violins for beginning violin students. The company produced 2,000 in its first month of operations. At month-end, 600 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $112.50 each. Total costs for the month were as follows: Direct materials used $80,000 Direct Labor 50,000 Variable Manufacturing overhead 30,000 Fixed Manufacturing overhead 40,000 Variable selling and administrative expenses 10,000 Fixed Selling and Administrative expenses 15,000 Prepare both a traditional (absorption costing) income statement and a contribution margin income statement. Why are the operating incomes different?...
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- Fall '08
- Managerial Accounting, $425,000, $448,000, $437,000, $112.50