Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit: Manufacturing Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Yixed costs per year: Pixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 7. What is the amount of the difference between the variable costing and absorption costing net operating Incomes (losses)? Difference of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Absorption costing net operating income (loss) Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following Information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346,000 1. What is the company's break-even point in unit sales? Break even point units 2. Is it above or below the actual sales volume? Below Above Required Information The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per units Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Tixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $774,000 $346.000 9. What would have been the company's variable costing net operating Income (loss) if it had produced and sold 38,000 units? Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following Information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per units Manufacturing Direct materials Direct Labour Variable manufacturing overhead Variable selling and administrative Pixed costs per year! Pixed manufacturing overhead Fixed selling and administrative expenses 3776.000 $346,000 10. What would have been the company's absorption costing net operating Income (loss) If it had produced and sold 38,000 units? Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $72 per unit. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Variable costs per unit: Manufacturing: Direct materiala Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per years Pixed manufacturing overhead Pixed selling and administrative expenses $774,000 $346,000 11. If the company produces 5,000 fewer units than it sells in its second year of operations, will absorption costing net operating income be higher or lower than variable costing net operating Income In Year 2? Higher Lower
