The f units P 17. What is the importance studies for a company? 18. What is an opportunity cost? Give an example, 19. What are distribution costs? 20. What is the purpose of the analysis of dis- tribution costs? 21. In cost analysis, what determines which costs should be included in a study? hat is the break-even point? wat steps are required in constructing a ak-even chart? at is the difference between the contri. Ton margin ratio and the margin of ety ratio? at impact does income tax have on the ak-even point? me differential analysis, differential reve- differential cost, and differential income. 1. 2. Usi The Ent Ma EXERCISES E10-1 FA to eview 1 Variable costing versus absorption costing Yellowstone Fabricators uses a process cost system and applies actual factory overhead to work in process at the end of the month. The following data came from the records for March: $200,000 Direct materials $100,000 Direct labor Variable factory overhead $ 80,000 Fixed factory overhead. $ 60,000 $ 40,000 Selling and administrative expenses Units produced 25,000 Units sold. 20,000 Selling price per unit $ 25 There were no beginning inventories and no ending work in process inventory. From the information presented, compute the following: 1. Unit cost of production under absorption costing and variable costing 2. Cost of the ending inventory under absorption costing and var- iable costing