Analyzing Income under Absorption and Variable CostingVariable manufacturing costs are $86 per unit, and fixed manufacturing costs are $64,800. Sales are estimated to be 5,400 units.If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar.a. How much would absorption costing operating income differ between a plan to produce 5,400 units and a plan to produce 7,200 units?Xb. How much would variable costing operating income differ between the two production plans?$X

Under variable costing only the variable cost incurred in factory is considered to be product cost…

Answered: Variable manufacturing costs are $86…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

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Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $86 per unit, and fixed manufacturing costs are $193,200. Sales are estimated to be 6,900 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 6,900 units and a plan to produce 9,200 units? X b. How much would variable costing operating income differ between the two production plans? ✓
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