Four Sheets (FS) Company uses standard costing. Kate King, the new president of FS Company, is presented

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Four Sheets (FS) Company uses standard costing. Kate King, the new president of FS Company, is presented with the following data for 2015:
Four Sheets (FS) Company uses standard costing. Kate King, the

Required
1. At what percentage of denominator level was the plant operating during 2015?
2. How much fixed manufacturing overhead was included in the 2014 and the 2015 ending inventory under absorption costing?
3. Reconcile and explain the difference in 2015 operating incomes under variable and absorption costing.
4. Kate King is concerned. She notes that despite an increase in sales over 2014, 2015 operating income has actually declined under absorption costing. Explain how this occurred.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0133138443

7th Canadian Edition

Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham

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