Oak RidgeManufacturing produces snow shovels. The selling price per snow shovel is $33.00. There is no beginning inventory.

Costs involved in production are:

Direct material

$5.00Direct labor

3.00Variable manufacturing overhead

4.00Total variable manufacturing costs per unit

$12.00Fixed manufacturing overhead per year

$119,340

In addition, the company has fixed selling and administrative costs of $158,500per year.

During the year,Oak Ridgeproduces45,900snow shovels and sells40,860snow shovels.

How much fixed manufacturing overhead is in ending inventory under full costing?

Fixed manufacturing overhead in ending inventory$ __________

Compare this amount to the difference in the net incomes calculated in Exercise 5-13.

The amount of fixed manufacturing overhead in ending inventory under full ___________costing is?

select an option

Less than, equal, or greater

equal to

greater than

less than

the difference in net income between full costing and variable costing.