CLICK HERE TO SAVE YOUR WOUL G B 1 Starfax, Inc. manufactures a small part that is widely used in various electronic products such as home computers. The operating results using variable costing as well as the flow in units for the most recent three months are as follows: March $14,000 8,000 12.000 18,000 2,000 2 December January February $11,000 $6,000 Variable Cost Operating income (loss) 2,000 4,000 5 Beginning inventory in units 15,000 10,000 18,000 6 Production in units 13,000 14,000 7 Sales in units 4,000 8,000 8 Ending inventory in units 9 10 The following data is applicable to all months: 11 Variable manufacturing costs $5.00 per unit 12 Variable selling expenses $2.00 per unit $54,000 per month 13 Fixed manufacturing overhead 14 15 Required: 16 17 1. Calculate the fixed overhead per unit for December, January, February and March. (1 mark) 18 19 December January February 20 21 22 Fixed overhead per unit TOUC 2 Now March 15 Required: 16 1 1. Calculate the fixed overhead per unit for December, January, February and March. (1 mark) December January February March 18 20 21 22 23 24 Fixed overhead per unit 2. Determine the absorption costing operating income for March using the income reconciliation approach. Show all supporting calculations. (4 marks) 25 Variable Cost Operating income (loss) 26 27 28 19 0 1 3 Absorption Costing Operating income (loss)