Question
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at $37 each. Kalling's controller provided the
Income Statements under Absorption and Variable Costing
In the coming year, Kalling Company expects to sell 28,700 units at $37 each. Kalling's controller provided the following information for the coming year.
Units production | 30,000 |
Unit direct materials | $11.44 |
Unit direct labor | $3.16 |
Unit variable overhead | $1.90 |
Unit fixed overhead* | $2.88 |
Unit selling expense (variable) | $2.00 |
Total fixed selling expense | $65,500 |
Total fixed administrative expense | $231,000 |
* The unit fixed overhead is based on 30,000 units produced. |
Required:
1. Calculate the cost of one unit of product under absorption costing. Round to the nearest cent. $fill in the blank 1 per unit
2. Calculate the cost of one unit of product under variable costing. Round to the nearest cent. $fill in the blank 2 per unit
3. Calculate operating income under absorption costing for next year. $fill in the blank 3
4. Calculate operating income under variable costing for next year. $fill in the blank 4
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