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Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced 2,600 Number of units sold 1,550 Sales price
Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced 2,600 Number of units sold 1,550 Sales price per unit $ 760.00 Direct materials per unit 60.00 Direct labor per unit 90.00 Variable manufacturing overhead per unit 40.00 Fixed manufacturing overhead per unit 119.20 ($309,920 2,600 units) Total variable selling expenses ($15 per unit sold) 23,250.00 Total fixed general and administrative expenses 87,000.00 Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete 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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