Manta Ray Company manufactures diving masks with a variable cost of $20. The masks sell for...
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Manta Ray Company manufactures diving masks with a variable cost of $20. The masks sell for $29. Budgeted fixed manufacturing overhead for the most recent year was $791,700. 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 Income Higher Under (Method) 1. Absorption costing 2. Variable costing 3. Same under both 101,500 units 99,400 units 91,000 units 96,100 units 79,000 unita 79,000 units Amount of Difference S 16,380 Manta Ray Company manufactures diving masks with a variable cost of $20. The masks sell for $29. Budgeted fixed manufacturing overhead for the most recent year was $791,700. 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 Income Higher Under (Method) 1. Absorption costing 2. Variable costing 3. Same under both 101,500 units 99,400 units 91,000 units 96,100 units 79,000 unita 79,000 units Amount of Difference S 16,380
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1 Fixed manufacturing cost per unit Fixed Manufacturing OverheadUnits produced 791700101500 units 78... View the full answer
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078110917
9th edition
Authors: Ronald W. Hilton
Posted Date:
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