Manta Ray Company manufactures diving masks with a variable cost of $35. The masks sell for...
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Manta Ray Company manufactures diving masks with a variable cost of $35. The masks sell for $44. Budgeted fixed manufacturing overhead for the most recent year was $799,000. Actual production was equal to planned production. Required: State whether operating income is higher under variable or absorption costing and the amount of the difference in reported operating income under the two methods. Treat each condition as an independent case. (Do not round intermediate calculations.) 1. Production Sales 2. Production Sales 3. Production. Sales: 1. 2. 3. Income Higher Under (Method) 94,000 units 92,000 units 85,000 units 91,600 units 82,000 units 82,000 units Amount of Difference Manta Ray Company manufactures diving masks with a variable cost of $35. The masks sell for $44. Budgeted fixed manufacturing overhead for the most recent year was $799,000. Actual production was equal to planned production. Required: State whether operating income is higher under variable or absorption costing and the amount of the difference in reported operating income under the two methods. Treat each condition as an independent case. (Do not round intermediate calculations.) 1. Production Sales 2. Production Sales 3. Production. Sales: 1. 2. 3. Income Higher Under (Method) 94,000 units 92,000 units 85,000 units 91,600 units 82,000 units 82,000 units Amount of Difference
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Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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