PA5-5 Comparing Full Absorption and Variable Costing [LO 5S-1]

Consider the following information for Presidio Inc.'s most recent year of operations. Additional information for Presidios most recent year of operations follows:

Number of units produced		2,300
Number of units sold		1,450
Unit sales price	$	620.00
Direct materials per unit		60.00
Direct labor per unit		90.00
Variable manufacturing overhead per unit		40.00
Fixed manufacturing overhead per unit ($270,940 2,300 units)		117.80
Total variable selling expenses ($13 per unit sold)		18,850.00
Total fixed general and administrative expenses		73,000.00

Required: 2. Complete a full absorption costing income statement and 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.