Question: ixed manufacturing costs are $51 per unit, and variable manufacturing costs are $153 per unit. Production was 98,000 units, while sales were 94,080 units. a.
ixed manufacturing costs are $51 per unit, and variable manufacturing costs are $153 per unit. Production was 98,000 units, while sales were 94,080 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 less than absorption costing.
b. Determine the difference in variable costing and absorption costing income from operations.
Variable CostingSales Exceed Production
The beginning inventory is 7,000 units. All of the units that were manufactured during the period and 7,000 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $59 per unit, and variable manufacturing costs are $111 per unit.
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.
b. Determine the difference in variable costing and absorption costing income from operations. $fill in the blank 2
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