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Bacon Mfg. has provided the following information. Units produced Units sold 2020 1,000 2021 1,000 825 875 Selling price per unit $20.00 $20.00 Total Manufacturing Costs: Variable 2,000 2,000 Fixed 3,000 3,000 Total Selling and Administration Variable Fixed 825 875 3,000 3,000 What is the difference in operating income between absorption and variable costing for 2021? a. Absorption income is $1,250 greater than variable income. b. Absorption income is $1,250 less than variable income. C. Absorption income is $375 greater than variable income. d. Absorption income is $2,125 greater than variable income.

Bacon Mfg. has provided the following information. Units produced Units sold 2020 1,000 2021 1,000 825 875 Selling price per unit $20.00 $20.00 Total Manufacturing Costs: Variable 2,000 2,000 Fixed 3,000 3,000 Total Selling and Administration Variable Fixed 825 875 3,000 3,000 What is the difference in operating income between absorption and variable costing for 2021? a. Absorption income is $1,250 greater than variable income. b. Absorption income is $1,250 less than variable income. C. Absorption income is $375 greater than variable income. d. Absorption income is $2,125 greater than variable income.

FINANCIAL ACCOUNTING
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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Please help me with show all calculation thanku

Bacon Mfg. has provided the following information. Units produced Units sold 2020 1,000 2021 1,000 825 875 Selling price per unit $20.00 $20.00 Total Manufacturing Costs: Variable 2,000 2,000 Fixed I 3,000 3,000 Total Selling and Administration Variable 825 875 Fixed 3,000 3,000 What is the difference in operating income between absorption and variable costing for 2021? a. Absorption income is $1,250 greater than variable income. b. Absorption income is $1,250 less than variable income. C. Absorption income is $375 greater than variable income. d. Absorption income is $2,125 greater than variable income.
Transcribed Image Text:Bacon Mfg. has provided the following information. Units produced Units sold 2020 1,000 2021 1,000 825 875 Selling price per unit $20.00 $20.00 Total Manufacturing Costs: Variable 2,000 2,000 Fixed I 3,000 3,000 Total Selling and Administration Variable 825 875 Fixed 3,000 3,000 What is the difference in operating income between absorption and variable costing for 2021? a. Absorption income is $1,250 greater than variable income. b. Absorption income is $1,250 less than variable income. C. Absorption income is $375 greater than variable income. d. Absorption income is $2,125 greater than variable income.
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