Barnes Corporation expected to sell 150,000 board games during the month of November, and the...
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Accounting
Barnes Corporation expected to sell 150,000 board games during the month of November, and the companys master budget contained the following data related to the sale and production of these games:
Revenue
$2,400,000
Cost of goods sold:
Direct materials
$675,000
Direct labor
$300,000
Variable Overhead
$450,000
Contribution Margin
$975,000
Fixed overhead
$250,000
Fixed selling and administration
$500,000
Operating income
$225,000
Actual sales during November were 180,000 games. Using a flexible budget, the company expects the operating income for the month of November to be:
A) $225,000
B) $270,000
C) $420,000
D) $510,000
Please Show All Steps. Thank You.
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