Question
Stiller Corporation incurred fixed manufacturing costs of $24,000 during 2015. Other information for 2015 includes: The budgeted denominator level is 2,000 units Units produced total
Stiller Corporation incurred fixed manufacturing costs of $24,000 during 2015. Other information for 2015 includes:
The budgeted denominator level is 2,000 units
Units produced total 1,500 units
Units sold total 1,200 units
Beginning inventory was zero The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.
1. What is the production-volume variance? (HINT: The answer is $6,000, but I need work to support this)
2.Operating income using absorption costing will be___than operating income if using variable costing? (HINT: The answer is $3,600 higher, but I need work to support this)
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