Harper Company,which has only one product,has provided the following data concerning its most recent month of operations:

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Required:

a. Compute the total Contribution Margin.
b. Compute the Operating Income under Variable Costing.
c. Prepare a reconciliation from your Variable Costing Operating Income to compute Operating Income under absorption costing.

Question

Harper Company,which has only one product,has provided the following data concerning its most recent month of operations:

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Required:

a. Compute the total Contribution Margin.
b. Compute the Operating Income under Variable Costing.
c. Prepare a reconciliation from your Variable Costing Operating Income to compute Operating Income under absorption costing.

Quizplus · Accepted Answer

The Answer of Harper Company,which has only one product,has provided the following data concerning its most recent month of operations:

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Required:

a. Compute the total Contribution Margin.
b. Compute the Operating Income under Variable Costing.
c. Prepare a reconciliation from your Variable Costing Operating Income to compute Operating Income under absorption costing.

Harper Company,which Has Only One Product,has Provided the Following Data