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Hello! could you help me to solve the following question below? Thank you! Bianca Bicycles Company manufactures mountain bikes with a standard variable cost of
Hello! could you help me to solve the following question below? Thank you!
Bianca Bicycles Company manufactures mountain bikes with a standard variable cost of $200. The Dicycles sell for $350 each. Budgeted fixed manufacturing overhead for the most recent year was $2,200,000. Planned and actual production for the year were the same. Required: a. Under each of the following conditions states weather income is greater (higher) under variable or absorption costing, and b. state the amount of the difference reported in net income under the two methods. Treat each case independently from the others. 1) Production Sales 20,000 units 23,000 units 2) Production Sales 10,000 units 10.000 units TET PRO 3) Production Sales 11,000 units 9,000 units Step by Step Solution
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