Question
Consider the following information for Presidio Inc.'s most recent year of operations. Additional information for Presidios most recent year of operations follows: Number of units
Consider the following information for Presidio Inc.'s most recent year of operations. Additional information for Presidios most recent year of operations follows: Number of units produced 2,900 Number of units sold 1,750 Unit sales price $ 680.00 Direct materials per unit 55.00 Direct labor per unit 85.00 Variable manufacturing overhead per unit 35.00 Fixed manufacturing overhead per unit ($343,360 2,900 units) 118.40 Total variable selling expenses ($13 per unit sold) 22,750.00 Total fixed general and administrative expenses 79,000.00 Required: 2. Complete a full absorption costing income statement and a variable costing income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing.
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