Question
Alpha Company incurred fixed manufacturing costs of $20155 during 2022. Other information for 2022 includes: The budgeted labour hours for the year is 4331 hours
Alpha Company incurred fixed manufacturing costs of $20155 during 2022. Other information for 2022 includes:
The budgeted labour hours for the year is 4331 hours
Total number of units produced during the year is 1983 units
Total number of units sold during the year is 1794 units
Beginning inventory was zero.
Alpha uses the variable costing method in its manufacturing process and the fixed manufacturing cost rate is based on the budgeted labour hours.
The 2022 operating income of Alpha using variable costing method will be $________ than the operating income if absorption costing method was used. (If the operating income under the variable costing method is lower than the operating income under the absorption costing method, present your answer as a negative figure. Otherwise, present the answer without a sign.)
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