Question
furniture company manufactures desks for office use. The variable cost of 110 units in beginning inventory is $86 each. The absorption cost is $156.52 each.
furniture company manufactures desks for office use. The variable cost of 110 units in beginning inventory is $86 each. The absorption cost is $156.52 each. following is the information about this periods production
Selling price - $310 per desk
Variable production cost - $86 per desk
Fixed production costs - $10,100 per month
Variable selling and admin costs - $30
Fixed selling and admin costs - $6150
Estimate operating income for a month in which 210 desks are manufactured and 240 are sales if the company uses variable costing ?
Estimate operating income for a month in which 210 desks are manufactured and 240 are sales if the company uses absorption costing ?
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