1. Howley Company has the following information for April:

Sales $912,000

VC of goods sold 474,000

FC mfg. 82,000

VC selling & adm. 238,000

FC selling & adm. 54,700

Determine

1. Operating Income for Howley during the month of April.

2. FC Mfg. $44/unit

VC Mfg. $100/unit

Production 67,200 units

Sales 50,400

Determine:

a. Whether Variable Costing operating income is less than or greater than Absorption Costing operating income.

3. Beginning Inventory 52,500 units

Beginning Inventory Costs:

Fixed Mfg. Costs $14.70/unit

Variable Mfg. Costs $30.00/unit

During the month of April, all the beginning inventory units were sold as well as all the

units that were manufactured during April.

Determine:

1. Whether Variable Costing operating income is less than or greater than Absorption Costing operating income.

4. VC Mfg. $126/unit

FC Mfg. $157,500

Sales estimate 10,000 units

Determine:

a. How much would Variable Costing Operating Income differ between the two production plans?