Understanding absorption and variable costing data The Gordone Company uses absorp- tion costing for all of its external financial statements and variable costing to provide management with useful planning and control data. Underapplied or overapplied fixed overhead is $0. The following data were collected for the current year:

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Beginning inventory Ending inventory Normal capacity Variable Units Unit Cost Absorption Unit Cost 5,000 $20 $28 3,000 21 30 25,000