: Variable Costing Vs. Absorption Costing A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Show your calculations

Selling price $ 148

Units in beginning inventory 0

Units produced 6,000

Units sold 5,400

Units in ending inventory 600

Variable costs per unit:

Direct materials $ 38

Direct labor $ 53

Variable manufacturing overhead $ 3

Variable selling and administrative expense $ 11

Fixed costs:

Fixed manufacturing overhead $ 78,000

Fixed selling and administrative expense $ 48,000

1- What is the cost per under absorption costing?

2- What is the cost per under variable costing?

3- What is the cost of ending inventory under absorption costing?

4- Prepare the income statement "contribution margin format" under variable costing?

5- What is the total period cost for the month under variable costing?

6- What is the net income under absorption costing? Explain the difference between variable costing and absorption costing net operating income in this year.