Okanagan Products manufactures Ogo Pogos, a line of stuffed toys. Variable manufacturing overhead is applied at the rate of $1.60 per labor-hour, and fixed manufacturing overhead at a rate of $2.00 per labor-hour. Actual costs were as follows:

During the period, 25,000 units were produced, and 23,800 units were sold at a selling price of $20 each. There were no beginning inventories.

a. Use T-accounts to trace the cost flows using variable costing.
h. Use T-accounts to trace the cost flows using full-absorption costing.

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Direct materials Direct labor (at $4.20 per hour)... . . $ 50,000 Actual variable manufacturing overhead... Variable marketing and administrative costs .... Actual fixed manufacturing overhead .... Fixed marketing and administrative costs. . . . . 126,000 52,000 45,000 58,000 28,000