1.The following information pertains to Brian Stone Corporation:

Beginning fixed manufacturing overhead in inventory

$45,000

Ending fixed manufacturing overhead in inventory

75,750

Beginning variable manufacturing overhead in inventory

$30,000

Ending variable manufacturing overhead in inventory

14,250

Fixed selling and administrative costs

$724,000

Units produced

5,000 units

Units sold

4,800 units

What is the difference between operating incomes under absorption costing and variable costing?

a.$750

b.$7,500

c.$14,000

d.$15,750

e.$30,750

Answer the following question(s) using the information below.

Schmidt Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows:

Direct materials

$45,000

Direct labour

105,000

Variable factory overhead

30,000

Fixed factory overhead

70,000

Total costs

$250,000

Of the fixed factory overhead costs, $40,000 is unavoidable.