Graphite Inc. makes and sells pencils for $0.10 each. Production for each pencil made up of: $0.04 of fixed manufacturing costs and $0.03 of variable manufacturing costs. The company normally produces 1,000,000 pencils for the year and has $40,000 in fixed manufacturing costs.

During the current year, Graphite sells 750,000 pencils.

What is the cost to manufacture a pencil under Absorption Costing?

: Question 2

Graphite Inc. makes and sells pencils for $0.10 each. Production for each pencil made up of: $0.04 of fixed manufacturing costs and $0.03 of variable manufacturing costs. The company normally produces 1,000,000 pencils for the year and has $40,000 in fixed manufacturing costs.

During the current year, Graphite sells 750,000 pencils.

What is the cost to manufacture a pencil under Variable Costing?

Question 3

Graphite Inc. makes and sells pencils for $0.10 each. Production for each pencil made up of: $0.04 of fixed manufacturing costs and $0.03 of variable manufacturing costs. The company normally produces 1,000,000 pencils for the year and has $40,000 in fixed manufacturing costs.

During the current year, Graphite sells 750,000 pencils.

How much fixed manufacturing cost will be on Graphite's Absorption Costing Income Statement?

Question 4

Graphite Inc. makes and sells pencils for $0.10 each. Production for each pencil made up of: $0.04 of fixed manufacturing costs and $0.03 of variable manufacturing costs. The company normally produces 1,000,000 pencils for the year and has $40,000 in fixed manufacturing costs.

During the current year, Graphite sells 750,000 pencils.

How much fixed manufacturing cost will be on Graphite's Variable Costing Income Statement?