Absorption and Variable Costing; Cost of Goods Sold

Bondware Inc., has a highly automated assembly line that uses very little direct labor. Therefore, direct labor is part of variable overhead. For March, assume that it incurred the following unit costs:

Direct materials	$520
Variable overhead	460
Fixed overhead	180

The 100 units of beginning inventory for March had an absorption costing value of $92,000 and a variable costing value of $78,000. For March, assume that Bondware Inc. produced 500 units and sold 540 units.

Compute Bondware's March Cost of Goods Sold using both the variable and absorption costing methods.

	Cost of Goods Sold
Absorption costing	$ Answer
Variable costing	$ Answer 0

QUESTIONIncorrect Ponts out of 2.00 PFlag question Absorption and Variable Costing; Cost of Goods Sold Bondware Inc., has a highly automated assembly line that uses very little direct labor. Therefore, direct labor is part of variable overhead. For March, assume that it incurred the following unit costs: Direct materials $520 Variable overhead 460 Fixed overhead 180 The 100 units of beginning inventory for March had an absorption costing value of $92,000 and a variable costing value of $78,000. For March, assume that Bondware Inc. produced 500 units and sold 540 units. Compute Bondware's March Cost of Goods Sold using both the variable and absorption costing methods. Cost of Goods Sold Absorption costing 521400 Variable costing Check