absorption costing income statement

OBJECTIVE 1 Home Problem 8-38 Variable Costing, Absorption Costing, Inventory Valuation Zeitgeist Company manufactures silicon sleeves for MP3 players. In August 2013, Zeitgeist began producing the colourful sleeves. During the month of August, 16,000 were produced, and 14,750 were sold at R69.50 each. The following costs were incurred: Direct materials R268,800 Direct labour 67,200 Variable overhead 59,200 Fixed overhead 281,600 A selling commission of 8% of sales price was paid. Administrative expenses, all fixed, amounted to R378,900. (Continued)