$1\mathrm{.}0$ What is the manufacturing cost?

$2\mathrm{.}0$ What is the cost of goods manufactured? How is it calculated?

Absorption versus variable costing

Absorption costing

Variable costing

Type of cost

Direct materials

Direct labour

Variable manufacturing overhead

Fixed manufacturing overhead

Manufacturing cost per unit

$55$

$55$

$3$

$3$

$1$

$1$

Fixed manufacturing cost is $$120,000.$ Unit sales of the product were $20,000,$ and $30,000$ umits were produced.

$1\mathrm{.}0$ What is the total manufacturing cost per unit under absorption and variable costing?

$2\mathrm{.}0$ Based on the above facts, would a difference exist between an absorption and a variable operating income statement? If yes, which one would have a higher operating income?