QS 19-28A (Algo) Variable and absorption costing income LO A2

Zarne Company reports variable manufacturing costs of $75 per unit and fixed overhead of $10 per unit. Beginning finished goods inventory under absorption costing is 500 units. The company produced 7,800 units and sold 8,300 units. (a) Determine whether absorption costing income is greater than or less than variable costing income. (b) Compute the difference in income between absorption costing income and variable costing income. Complete this question by entering your answers in the tabs below.

• Required A
• Required B

Compute the difference in income between absorption costing income and variable costing income. (Leave no cells blank - be certain to enter "0" wherever required. Amounts to be deducted should be indicated with a minus sign.)

Fixed overhead in ending FG inventory
Fixed overhead in beginning FG inventory	0
Difference between absorption costing and variable costing income