QUESTION 2 Heston Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory Fixed manufacturing overhead in production Ending fixed manufacturing overhead in inventory $250,000 825,000 90,000 Beginning variable manufacturing overhead in inventory Variable manufacturing overhead in production Ending variable manufacturing overhead in inventory $20,000 100,000 30,000 What is the difference between operating incomes under absorption costing and variable costing? $160,000 $30,000 $110,000 $100,000 QUESTION 3 Zahra's Decoratives produces and sells a decorative pillow for $104.00 per unit. In the first month of operation, 2000 units were produced and 1750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: $23.00 per unit $5.00 per unit $15.00 per unit $24.00 per unit Variable manufacturing costs Variable marketing costs Fixed Manufacturing costs Administrative expenses, all fixed Ending inventories Direct materials WIP Finished goods -0- -O- 250 units What is cost of goods sold per unit using absorption costing