For April, Quick Test Enterprises prepared, in accordance with Generally Accepted Accounting Principles (GAAP), the following income statement using absorption costing.

Quick Test uses a FIFO (i.e., First-In-First-Out) inventory cost flow assumption to compute cost of goods sold and the value of ending inventory. At the beginning of April (i.e., at the end of March), Quick test had 750 units in inventory with a total cost of $45,000. Of the $45,000, $11,250 represents allocated fixed manufacturing overhead costs.
Quick Test produced 1,250 units during April. The variable manufacturing cost per unit produced during April was $50. In addition, fixed selling, general, and administrative expenses for April were $12,000.

Required:
a. Compute the value of Quick Test€™s inventory at the end of April under variable costing.
b. How much did Quick Test actually spend on fixed manufacturing overhead costs during April?
c. Prepare Quick Test€™s variable costing income statement for April.
d. Reconcile the difference between Quick Test€™s April income under variable costing and April income under absorptioncosting.

Quick Test Enterprises Sales volume (in units) 1.500 Total Per Unit S150,000 S100 70 330 Revenue Cost of goods sold Gross margin Selling, general, and administrative (SG&A) expenses Profit before taxes 105.000 $45,000 18.000 S27,.000 S18