Required intormation

$[$The following information applies to the questions displayed below.$]$

Diego Company manufactures one product that is sold for $$76$ per unit in two geographic regions $-$

East and West. The following information pertains to the company's first year of operations in which it

produced $58,000$ units and sold $54,000$ units.

Variable costs per unit:

Manufacturing:

Direct materials $$23$

Direct labor $ $15$

Variable manufacturing overhead $$3$

Variable selling and administrative $$3$

Fixed costs per year:

Fixed manufacturing overhead

$$1,160,000$

Fixed selling and administrative expense $$640,000$

The company sold $40,000$ units in the East region and $14,000$ units in the West region. It determined

$$320,000$ of its fixed selling and administrative expense is traceable to the West region, $$270,000$ is

traceable to the East region, and the remaining $$50,000$ is a common fixed expense. The company

will continue to incur the total amount of its fixed manufacturing overhead costs as long as it

continues to produce any amount of its only product.

What is the difference between the variable costing and absorption costing net operating incomes $($losses$)?$

Note: Enter any losses or deductions as a negative value.

Difference of Variable Costing and Absorption Costing Net Operating Income $($Losses$)$

Variable costing net operating income $($loss$)$

Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing

Absorption costing net operating income $($loss$)$