During 2020, Rafael Corp. produced 48,700 units and sold 34,090 for $14 per unit. Variable manufacturing costs were $7 per unit. Annual fixed manufacturing overhead was $102,270 ($3 per unit). Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $19,200. Prepare an absorption-costing income statement. Rafael Corp. Income Statement-Absorption Costing Reconcile the difference between the net income under variable costing and the net income under absorption costing. That is, show a calculation that explains what causes the difference in net income between the two approaches.

During 2020, Rafael Corp. produced 48,700 units and sold 34,090 for $14 per unit. Variable manufacturing costs were $7 per unit. Annual fixed manufacturing overhead was $102,270 ($3 per unit). Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $19,200. Prepare an absorption-costing income statement. Rafael Corp. Income Statement-Absorption Costing Reconcile the difference between the net income under variable costing and the net income under absorption costing. That is, show a calculation that explains what causes the difference in net income between the two approaches.

Name: During 2020, Rafael Corp. produced 48,700 units and sold 34,090 for $
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Description: During 2020, Rafael Corp. produced 48,700 units and sold 34,090 for $14 per unit. Variable manufacturing costs were $7 per unit. Annual fixed manufacturing overhead was $102,270 ($3 per unit). Variableselling and administrative costs were $2 per uni

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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