Hammond began business at the start of 2014. The company planned to produce 50,000 units, and actual production conformed to expectations. Sales totaled 47,000 units at $43 each. Costs incurred were:
Variable manufacturing overhead per unit is $20
Fixed manufacturing overhead is 250,000
Variable selling and administrative cost per unit is $10
Fixed selling and administrative cost per unit is 150,000
If there were no variances, the company’s variable-costing income would be:
