Question

Hinkle Company uses standard costing. Tim Bartina, the new president of Hinkle Company, is presented with the following data for 2013:
REQUIRED
1. At what percentage of denominator level was the plant operating during 2013?
2. How much fixed manufacturing overhead was included in the 2012 and the 2013 ending inventory under absorption costing?
3. Reconcile and explain the difference in 2013 operating incomes under variable and absorption costing.
4. Tim Bartina is concerned. He notes that despite an increase in sales over 2012, 2013 operating income has actually declined under absorption costing. Explain how this occurred.


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  • CreatedJuly 31, 2015
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