3) Craig Company has per-unit fixed and variable manufacturing costs of $40 and $15, respectively. Variable selling and administrative costs are $9 per unit. Consider the two independent cases that follow for the firm. Case A: Variable-costing income, $110,000; sales, 6,000 units; production, 6,000 units Case B: Variable-costing income, $178,000; sales, 7,500 units; production, 7,100 units Required: A. From a product-costing perspective, what is the basic difference between absorption costing and variable costing? B. Compute Craig's absorption-costing income and variable costing income in Case A. C. Compute Craig's absorption-costing income and variable costing income in Case B

1) All of the following are inventoried under absorption costing except: A) sales commissions. B) machine lubricant used in production. C) raw materials used in production. D) utilities cost consumed in manufacturing. 1)

2) Consider the following comments about absorption- and variable-costing income statements: I. A variable-costing income statement discloses a firm's contribution margin. II. Cost of goods sold on an absorption-costing income statement includes fixed costs. III. The amount of variable selling and administrative cost is the same on absorption- and variable-costing income statements. Which of the above statements is (are) true? A) II only. B) I and II. C) II and III. D) I, II, and III.