Question: Variable Costing - Production Exceeds Sales Fixed manufacturing costs are $ 5 7 per unit, and variable manufacturing costs are $ 1 7 1 per

Variable Costing-Production Exceeds Sales
Fixed manufacturing costs are $57 per unit, and variable manufacturing costs are $171 per unit. Production was 97,000 units, while sales were 92,150 units.
a. Determine whether variable costing operating income is less than or greater than absorption costing operating income.
b. Determine the difference in variable costing and absorption costing operating income.
Variable Costing - Production Exceeds Sales Fixed

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!

Q:

The Endangered Species Act (ESA) charges the National Marine Fisheries Service (a federal agency) with the duty to ensure that any proposed action by the Council does not jeopardize any threatened or...

Q:

Variable Costing - Production Exceeds Sales Fixed manufacturing costs are $25 per unit, and variable manufacturing costs are $75 per unit. Production was 130,000 units, while sales were 123,500 units...

Q:

Variable Costing - Production Exceeds Sales Fixed manufacturing costs are $34 per unit, and variable manufacturing costs are s102 per unit. Production was 127,000 units, while sales were 119,380...

Q:

Variable Costing - Production Exceeds Sales Foxed manufacturing costs are $28 per unit, and variable manufacturing costs are $84 per unit. Production was 126,000 units, while sales were 119,700 units...

Q:

Variable Costing = Production Exceeds Sales Faxed manufacturing costs are $45 per unit, and yariable manufacturing costs are $135 per unit. Production was 142,000 units, while sales were 134,900...

Q:

16. When production exceeds sales, fixed manufacturing overhead costs a. Are released from inventory under absorption costing b. Are deferred in inventory under absorption costing c. Are released...

Q:

16. When production exceeds sales, fixed manufacturing overhead costs a. Are released from inventory under absorption costing b. Are deferred in inventory under absorption costing c. Are released...

Q:

PLEASE HELP AND SHOW WORK, please highlight answers, THANK YOU!! 1. 2. 3. 4. 5. Target Profit Forest Company sells a product for $265 per unit. The variable cost is $135 per unit, and fixed costs are...

Q:

Are these correct ? please only correct me if It's wrong Equivalent Units of Production: Weighted average method Units of production data for the two departments of Atlantic Cable and Wire Company...

Q:

Variable CostingProduction Exceeds Sales Fixed manufacturing costs are $38 per unit, and variable manufacturing costs are $114 per unit. Production was 82,000 units, while sales were 77,080 units. a....

Q:

Variable Costing-Production Exceeds Sales Fixed manufacturing costs are $52 per unit, and variable manufacturing costs are $156 per unit. Production was 107,000 units, while sales were 102,720 units....

Q:

Dina is debating whether to attend college. Chris promises her $40,000 if she will attend college and graduate. Dina tells Chris that she agrees to this. She enrolls in a local college, attends...

Q:

Madali Lang company was given two proposals by JMr. Marcelo for financing an equipment. The proposals are as follows: A) Leasing the equipment: Madali Lang can lease the equipment under a five year...

Q:

An employee of JHT Holdings, Inci, a private trucking company, was responsible for resclving roadaay acoldent claims under $ 2 5 , 0 0 0 . The employee created fake acodent claims and wrote...

Q:

A particle is moving in three dimensions and its position vector is given by; r(t) = (4, 4t + 2, 3t)i + (4, 5t - 2, 3)2 + (3, 3t + 3, 1t)k where r is in meters and t is in seconds. Determine the...