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CoursHeroTranscribedText: Exercises 18-43 Full Costing and Variable Costing; Operating Income [LO 18-4] Start Me Up...

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Accounting

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CoursHeroTranscribedText: Exercises 18-43 Full Costing and Variable Costing; Operating Income [LO 18-4] Start Me Up Inc. manufactures a caffeinated energy drink that sells for $4.20 each. The results for its first year of operations appear in the table below: Projections Number of drinks produced 48, 500 Number of drinks sold 46, 100 Direct materials per drink 0. 57 Direct labor per drink 0. 27 Variable manufacturing overhead per drink 0. 17 Total fixed manufacturing overhead 29, 585 Total fixed selling and administrative costs 6 51, 000 Required: 1. Compute the operating income for the first year under full costing. 2. Compute the operating income for the first year under variable costing. (For all requirements, do not round intermediate calculations.) 1 . Operating income for the first year under full costing 70,704 X 2. Operating income for the first year under variable costing 66,474

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