Question: PA5-5 (Algo) Comparing Full Absorption and Variable Costing [LO 5S-1] Consider the following information for Presidio Inc.'s most recent year of operations. Number of
PA5-5 (Algo) Comparing Full Absorption and Variable Costing [LO 5S-1] Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced Number of units sold Sales price per unit Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($249,270 2,100 units) Total variable selling expenses ($10 per unit sold) Total fixed general and administrative expenses 2,100 1,300 710.00 60.00 90.00 40.00 118.70 13,000.00 82,000.00 Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing.
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