The selling price per unit is $3,500. The budgeted level of production used to calculate the budgeted
Question:
The selling price per unit is $3,500. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,100 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.
Requirement:
1. Prepare income statements for Mark inJanuary, February, and March 2020 under (a) variable costing and(b) absorption costing.
2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing.
Mark manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows:
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav