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Loyal Consumer Products Limited produces and sells antibacterial cleanser. Fixed manufacturing overhead incurred for the above production process totaled $902,000. Net operating income under variable

Loyal Consumer Products Limited produces and sells antibacterial cleanser. Fixed manufacturing overhead incurred for the above production process totaled $902,000. Net operating income under variable costing was 2.1 million dollars. The company did not have beginning inventory, units produced were 310,000 and units sold were 215,000.

  1. Calculate the units of remaining inventory.

  2. Compute the manufacturing overhead per unit.

  3. Use vertical 3 rows schedule to show the variances between the variable costing and

    absorption cost operating income figures.

  4. In this case, what is the effect on NOI under absorption costing method? (less than 10 words).

    Also, explain briefly the reason (less than 10 words).

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