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  1. business
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  3. xyz company produces a single product. last year,x

XYZ Company produces a single product. Last year,XYZ manufactured 17,000 units and sold 13,000 units....

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Accounting

XYZ Company produces a single product. Last year,XYZ manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:

Direct Materials. $ 153,000 Direct Labor. 110,500 Variable Manufacturing overhead 204,000 Fixed manufacturing overhead. 255,000 Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost. a. What is the contribution margin per unit ?

b. Under absorption costing, what would be the carrying value on the balance sheet of the ending inventor for the year ? c. . Under variable costing, what would be the company's net operating income for the year ?

Is it higher than under absorption costing or lower than under absorption costing? By how much ?

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