Use the following information for questions 1-5:

# of units produced	6,600
Variable Costs per Unit:
Direct Materials	$46
Direct Labor	$16
Variable Manufacturing Overhead	$8
Variable Selling & Admin. Expense	$4
Fixed Costs per year:
Fixed Manufacturing Overhead	$234,300
Fixed Selling & Admin	$161,700

The Absorption Costing Unit Product Cost is:

$100.20

$105.50

$74

$70

The Variable Costing Unit Product Cost is:

$70

$74

$105.50

$100.20

If 6,000 units are sold during the period, total period cost under variable costing would be:

$188,100

$396,000

$422,400

$420,000

If 6,000 units are sold during the period, total period cost under absorption costing would be:

$188,100

$185,700

$234,300

$422,400

If 6,000 units are sold during the period, net income under the absorption costing approach will be:

$15,750 lower than net income under the variable costing approach

$15,750 higher than net income under the variable costing approach

$21,300 higher than net income under the variable costing approach

$21,300 lower than net income under the variable costing approach