Question: Please show work and answer absorption costing Exercise 8-24 Difference in Operating Income under Absorption and Variable Costing (LO 8-1, 8-4) Bianca Bicycle Company manufactures

Please show work and answer absorption costing

Please show work and answer absorption costing Exercise 8-24 Difference in Operating

Exercise 8-24 Difference in Operating Income under Absorption and Variable Costing (LO 8-1, 8-4) Bianca Bicycle Company manufactures mountain bikes with a variable cost of $2,600. The bicycles sell for $3,350 each. Budgeted fixed manufacturing overhead for the most recent year was $12,600,000. Planned and actual production for the year were the same. Required: State whether operating income is higher under variable or absorption costing and the amount of the difference in reported operating income under the two methods. Treat each condition as an independent case. (Round intermediate calculations to 2 decimal places.) 1. Production Sales 2. Production Sales 3. Production Sales 23,600 units 28, 200 units 13,800 units 13,800 units 13,400 units 10,600 units Answer is not complete. Amount of Difference 2,455,932 1. Income Higher Under (Method) Variable costing Same under both Absorption costing $ 00 2. $ 0 3

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!