
1.
Variable Costing:
The variable costing is a method used to allocate the fixed manufacturing overhead by a company. It allocates these
Absorption Costing:
The absorption costing is a method used to allocate the fixed manufacturing overhead by a company. It allocates these overheads based on the inventory produced and inventory sold. It is based on the approach that the unsold inventory also consist some fixed manufacturing overhead incurred during a period.
To identify: (a) The operating income from variable costing, (b) The operating incomes from absorption costing.
2.
To explain: The difference among the operating incomes of various months under variable costing and absorption costing.

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Chapter 9 Solutions
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
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