2. Haffner Company has 100 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haffner produce All units incurred $95 in variable manufacturing costs and $30 in fixed manufacturing costs. Haffner also incurred $7,300 in Selling and Administrative C for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. Total product cost per unit Absorption costing Variable costing 125 95 Calculate the operating income for the year using absorption costing. Absorption costing Net Sales Revenue 55,100 Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income Calculate the operating income for the year using variable costing. Variable costing Net Sales Revenue Variable Cost Contribution Margin Fixed Manufacturing Costs Fixed Selling and Administrative Expenses Operating Income 55,100

2. Haffner Company has 100 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haffner produce All units incurred $95 in variable manufacturing costs and $30 in fixed manufacturing costs. Haffner also incurred $7,300 in Selling and Administrative C for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. Total product cost per unit Absorption costing Variable costing 125 95 Calculate the operating income for the year using absorption costing. Absorption costing Net Sales Revenue 55,100 Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income Calculate the operating income for the year using variable costing. Variable costing Net Sales Revenue Variable Cost Contribution Margin Fixed Manufacturing Costs Fixed Selling and Administrative Expenses Operating Income 55,100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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