Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,100 The bicycles sell for $1,850 each Budgeted fixed manufacturing overhead for the most recent year was $11,100,000 Planned and actual production for the year were the same Required State whether income is higher under variable or absorption costing and the amount of the difference in reported opearting income under the two methods Treat each condition as an independent case (Round intermediate calculations to 2 decimal places ) 1 Production Sales 2 Production Sales 3 Production Sales 22,100 units 25, 200 units 10,800 units 10,800 units 11,150 units 9,850 units X Answer is complete but not entirely correct Income Higher Under (Method) Variable costing 1 $ Amount of Difference 1,557,014 10,800 x 1,294,107 2 Same under both $ 3 Absorption costing $

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Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,100  The bicycles sell for $1,850 each  Budgeted fixed manufacturing overhead for the most recent year was $11,100,000  Planned and actual production for the year were the same  Required  State whether income is higher under variable or absorption costing and the amount of the difference in reported opearting income under the two methods  Treat each condition as an independent case  (Round intermediate calculations to 2 decimal places ) 1  Production Sales 2  Production Sales 3  Production Sales 22,100 units 25, 200 units 10,800 units 10,800 units 11,150 units 9,850 units X Answer is complete but not entirely correct  Income Higher Under (Method) Variable costing 1  $ Amount of Difference 1,557,014 10,800 x 1,294,107 2  Same under both $ 3  Absorption costing $

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Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,100. The bicycles sell for $1,850

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Management Leading And Collaborating In The Competitive World

Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,100. The bicycles sell for $1,850

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Management Leading And Collaborating In The Competitive World

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