11 Problem 8-38 Variable Costing and Absorption Costing Income Statements; Reconciling Reported Operating Income (LO 8-2, 8-3, 8-4) Chataqua Can Company manufactures metal cans used in the food-processing Industry. A case of cans sells for $25. The variable costs of production for one case of cans are as follows: 1.1 points Direct material 03:36:25 Direct labor Variable manufacturing overhead Total variable manufacturing cost per case $ 8.00 2.00 6.50 $16.50 eBook References Variable selling and administrative costs amount to $0.60 per case. Budgeted fixed manufacturing overhead is $300,000 per year, and fixed selling and administrative cost is $38,000 per year. The following data pertain to the company's first three years of operation. Year 1 Year 2 Year 3 Planned production (in units) 75,000 75,000 75,000 Finished-goods inventory (in units), January 1 Actual production (in units) 20,500 75,000 75,000 75,000 Sales (in units) 75,000 54,500 85,250 8 20,500 10,250 Finished-goods inventory (in units), December 31 Actual costs were the same as the budgeted costs.