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    Tyson Manufacturing Net Income

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    Tyson Manufacturing has the following cost information available for 2009:

    Direct Materials= $6/ unit
    Direct labor= $2/ unit
    Variable manufacturing Overhead= $1.50/ unit
    Variable selling and administrative costs= $3/ unit
    Fixed Manufacturing Overhead= $40,000
    Fixed Selling and administrative costs= $50,000

    During 2009, Tyson Manufacturing 10,000 units out of which 9,100 units were sold for $50 each.

    What is net income under variable costing?
    a) $251,250
    b) $254,850
    c) $285,000
    d) $291,250.

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    https://brainmass.com/business/accounting/tyson-manufacturing-net-income-525256

    Solution Preview

    9,100 x 50 = 455,000

    Less:
    9100 x 1.50 = 13,650 Variable manufacturing overhead
    9100 x 3.00 = 27,300 Variable selling and administrative

    Less:
    Direct materials = 9100 x 6.00 = ...

    Solution Summary

    This solution calculates the net income under variable costing for Tyson Manufacturing. Includes 1 reference.

    $2.19

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