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1 . 0 What is the manufacturing cost? 2 . 0 What is the cost of goods manufactured? How is it calculated? Absorption versus variable

1.0 What is the manufacturing cost?
2.0 What is the cost of goods manufactured? How is it calculated?
Absorption versus variable costing
Absorption costing
Variable costing
Type of cost
Direct materials
Direct labour
Variable manufacturing overhead
Fixed manufacturing overhead
Manufacturing cost per unit
55
55
3
3
1
1
Fixed manufacturing cost is $120,000. Unit sales of the product were 20,000, and 30,000 umits were produced.
1.0 What is the total manufacturing cost per unit under absorption and variable costing?
2.0 Based on the above facts, would a difference exist between an absorption and a variable operating income statement? If yes, which one would have a higher operating income?

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