Consider the following: Sales price, per unit$18 per unit Standard absorption cost rate$12 per unit Standard variable
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Question:
- Consider the following:
Sales price, per unit$18 per unit
Standard absorption cost rate$12 per unit
Standard variable cost rate$8 per unit
Variable selling expense rate$2 per unit
Fixed selling and administrative expenses$40,000
Fixed manufacturing overhead$60,000
Last period, 13,000 units were produced. In the current period, 15,000 units were produced. In each period, 13,000 units were sold. What is the difference in reported income under absorption and variable costing for the current period?
- The variable-costing income exceeded absorption-costing income by $4,000
- The absorption-costing income exceeded variable-costing income by $8,000
- The variable-costing income exceeded absorption-costing income by $6,000
- The absorption-costing income exceeded variable-costing income by $12,000
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