Chapter 21, Problem 19QS

To determine

Introduction:

Just like absorption costing, Variable costing is a method to be used for computing per unit product cost. The difference between both is that in absorption costing, fixed overheads are charged when products are sold whereas on the other hand in variable costing, fixed overheads are charged when it is incurred irrespective of difference in unit produced and sold.

Computation of Income using Variable costing method as discussed above