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Fixed manufacturing costs are $10 per unit, and variable manufacturing costs are $25 per unit. Selling and administrative costs are $3 per unit variable and
Fixed manufacturing costs are $10 per unit, and variable manufacturing costs are $25 per unit. Selling and administrative costs are $3 per unit variable and $2 per unit Fixed. Production was 13.000 units, while sales were 12,000 units at a selling price of $75 per unit. Determine (a) whether variable costing operating income is less than or greater than absorption costing operating income and (b) the difference in variable costing and absorption costing operating income. (C) prepare an absorption costing income statement (d) prepare a variable costing income statement. (e) in your own words explain the difference in the absorption and variable costing income statements. With this assessment include why the operating income is different, what income statement managers use to make their decisions and what components do they use to make decisions. How would these decisions impact the company and how would they change the income statement required by GAAP? Fixed manufacturing costs are $10 per unit, and variable manufacturing costs are $25 per unit. Selling and administrative costs are $3 per unit variable and $2 per unit Fixed. Production was 13.000 units, while sales were 12,000 units at a selling price of $75 per unit. Determine (a) whether variable costing operating income is less than or greater than absorption costing operating income and (b) the difference in variable costing and absorption costing operating income. (C) prepare an absorption costing income statement (d) prepare a variable costing income statement. (e) in your own words explain the difference in the absorption and variable costing income statements. With this assessment include why the operating income is different, what income statement managers use to make their decisions and what components do they use to make decisions. How would these decisions impact the company and how would they change the income statement required by GAAP
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