1 Zurgot Inc, manufactures and sells specially designed computer tables, using select hardwoods. The operating results using absorption costing as well as the sales in units and the production in units for the most recent three months are as follows: 2 + October November December $17,000 $3,000 $18,000 4,200 7,500 8,500 14,000 15,000 10,000 10,700 14,000 17,800 7,500 8,500 700 7 8 Variable Cost Operating income (loss) Beginning inventory in units Production in units Sales in units Ending inventory in units The following data is applicable to all months: Variable manufacturing costs Variable selling expenses Fixed manufacturing overhead September production in units 1 $4.00 per unit $3.00 per unit $42,000 per month 12,000 Required: 7 1. Calculate the fixed overhead per unit for September, October, November and December (1 mark) September October November December ACVC B3 New 15 16 Required: 17 18 1. Calculate the fixed overhead per unit for September October, November and December (1 mark) 19 20 September October November 21 December 23 Fixed overhead per unit 24 25 2. Determine the absorption costing operating income for December using the income reconciliation approach. Show all supporting 26 calculations. (4 marks) 27 28 Variable Cost Operating income (loss) 29 30 31 32 33 Absorption Costing Operating income (loss) 35