High Tension Transformers, Inc., manufactures heavy-duty transformers for electrical switching stations. The company uses variable costing for
Question:
The companys fixed manufacturing overhead per unit was constant at $450 for all three years.
Required:
1. Determine each years absorption costing net operating income. Present your answer in the form of a reconciliation report such as the one shown in Exhibit 76 .
2. In Year 4, the companys variable costing net operating income was $240,200 and its absorption costing net operating income was $267,200. Did inventories increase or decrease during Year 4?
How much fixed manufacturing overhead cost was deferred or released from inventory during Year4?
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Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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