How to calculate variable and absorption cost? CengageNOWv2| Online teach Xv2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress=DtrueHomeworkеВookPrint ItemBarnard Inc.Variable Costing Income StatementFor the Year Ended March 31, 20Y1Sales$1,300,000Variable cost of goods sold:Variable cost of goods manufactured$725,000Inventory, March 31(100,000)Total variable cost of goods sold(625,000)Manufacturing margin$675,000Total variable selling and administrative expenses(155,000)Contribution margin$520,000Fixed costs:Fixed manufacturing costs$330,600Fixed selling and administrative expenses105,000Total fixed costs(435,600)$84,400Operating incomeDetermine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.Variable costingAbsorption costing$46:3分 )12/7O%24%24

Absorption costing incorporates the entirety of the immediate expenses related with assembling an item, while variable costing can reject some direct fixed expenses. Variable costing remembers the entirety of the variable direct expenses for COGS however avoids immediate, fixed overhead expenses.Variable Costing Unit cost of goods = ( Total sales – Net income ) / Variable Cost of goods purchased = (1300000 – 84400 ) / 625000 = $1.94 Absorption Costing Unit cost of goods = ( Total sales – Net income ) / (Variable Cost of goods purchased + Fixed Cost ) = (1300000 – 84400 ) /( 625000 + 330600) = $1.27