1 Information taken from Horner Corporation's May accounting records follows: Direct materials used Direct labor Variable manufacturing overhead Fixed manufacturing overhead $263,000 97,000 47,000 185,000 Variable selling and administrative costs 68,000 Fixed selling and administrative costs 77,000 Sales revenues 710,000 3 points 8 01:51:25 Mc Graw Hill Required: A. Assuming the use of variable costing, compute the inventoriable costs for the month. B. Compute the month's inventoriable costs by using absorption costing. C. Assume that anticipated and actual production totaled 37,000 units, and that 26,500 units were sold during May. Determine the amount of fixed manufacturing overhead and fixed selling and administrative costs that would be expensed for the month under (1) variable costing and (2) absorption costing. D. Assume the same data as in requirement *C." Compute the contribution margin that would be reported on a variable-costing income statement. A. Inventoriable costs by using variable costing B. C. D. Inventoriable costs by using absorption costing 1. Variable costing: Fixed manufacturing overhead Fixed selling and administrative costs 2. Absorption costing: Fixed manufacturing overhead Fixed selling and administrative costs Contribution margin < Prev 1 of 3 Next