Alex Company reports variable manufacturing costs of $215 per unit and fixed overhead of $18 per unit. The company produced 39,000 units and sold 37,000 units. The company had no beginning finished goods inventory. (a) Determine whether absorption costing income is greater than or less than variable costing income. (b) Compute the difference in income between absorption costing income and variable costing income. Complete this question by entering your answers in the tabs below. Required A Required B
Alex Company reports variable manufacturing costs of $215 per unit and fixed overhead of $18 per unit. The company produced 39,000 units and sold 37,000 units. The company had no beginning finished goods inventory. (a) Determine whether absorption costing income is greater than or less than variable costing income. (b) Compute the difference in income between absorption costing income and variable costing income. Complete this question by entering your answers in the tabs below. Required A Required B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Alex Company reports variable manufacturing costs of $215 per unit and fixed overhead of $18 per unit. The company produced
39,000 units and sold 37,000 units. The company had no beginning finished goods inventory.
(a) Determine whether absorption costing income is greater than or less than variable costing income.
(b) Compute the difference in income between absorption costing Income and variable costing income.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute the difference in income between absorption costing income and variable costing income. (Leave no cells blank - be
certain to enter "0" wherever required.)
Fixed overhead in ending FG inventory
Fixed overhead in beginning FG inventory
Difference between absorption costing and variable costing income
< Required A
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