9-41 ABSORPTION, VARIABLE, AND THROUGHPUT COSTING. ENRG Inc. produces trail mix packaged for sale in convenience stores across Canada. At the beginning of April 2018, EnRG has no inventory of trail mix. Demand for the next three months is expected to remain constant at 50,000 bags per month. EnRG plans to produce 50,000 bags in April. However, many of the employees take vacation in June, so EnRG plans to produce 70,000 bags in May and only 30,000 bags in June. LO 3,4 1. Operating income for April, $75,000 Costs for the three months are expected to remain unchanged. The costs and revenues for April, May, and June are expected to be W Sales revenue $6.00 per bag Direct material cost $0.80 per bag Direct manufacturing labour cost $0.45 per bag Variable manufacturing overhead cost $0.30 per bag Costs for the three months are expected to remain unchanged. The costs and revenues for April, May, and June are expected to be Sales revenue $6.00 per bag Direct material cost $0.80 per bag Direct manufacturing labour cost $0.45 per bag Variable manufacturing overhead cost $0.30 per bag Variable selling cost $0.15 per bag Fixed manufacturing overhead cost $105,000 per month Fixed administrative costs $ 35,000 per month Suppose the actual costs, market demand, and levels of production for April, May, and June are as expected. Required 1. Compute operating income for April, May, and June under variable costing. 2. Compute operating income for April, May, and June under absorption costing. Assume that the denominator level for each 55513/pre $0.80 per bag Direct material cost $0.45 per bag Direct manufacturing labour cost $0.30 per bag Variable manufacturing overhead cost $0.15 per bag Variable selling cost $105,000 per month Fixed manufacturing overhead cost $ 35,000 per month Fixed administrative costs Suppose the actual costs, market demand, and levels of production for April, May, and June are as expected. Required 1. Compute operating income for April, May, and June under variable costing. 2. Compute operating income for April, May, and June under absorption costing. Assume that the denominator level for each month is that month's expected level of output. 3. Compute operating income for April, May, and June under throughput costing. 4. Discuss the benefits and problems associated with using throughput costing