1. Fixed manufacturing costs are $60 per unit, and variable manufacturing costs are $150 per unit. Production was 453,000 units, while sales were 426,000 units. Determine (a) whether variable costing operating income is less than or greater than absorption costing operating income, and (b) the difference in variable costing and absorption costing operating income.
1. Fixed
2. The beginning inventory is 11,600 units. All of the units that were manufactured during the period and 11,600 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $32 per unit, and variable manufacturing costs are $72 per unit. Determine whether variable costing operating income is less than or greater than absorption costing operating income.
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