Question: Fixed manufacturing costs are $39 per unit, and variable manufacturing costs are $117 per unit. Production was 140,000 units, while sales were 131,600 units. a.
Fixed manufacturing costs are $39 per unit, and variable manufacturing costs are $117 per unit. Production was 140,000 units, while sales were 131,600 units.
a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations.
Variable costing income from operations is greater than absorption costing.Variable costing income from operations is less than absorption costing.
b. Determine the difference in variable costing and absorption costing income from operations. $
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