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Variable Costing, Absorption Costing Prepare a variable - costing income statement. Round the unit cost to five decimal places, when required. Round your final answers
Variable Costing, Absorption Costing Prepare a variablecosting income statement. Round the unit cost to five decimal places, when required. Round your final answers to the nearest dollar.
Use the rounded values in subsequent computations.
Snobegon, Inc.
VariableCosting Income
Statement
For the First Year of Operations
Less:
What is the difference between the two income figures?
During its first year of operations, Snobegon, Inc. located in Lake Snobegon, Minnesota produced plastic snow scoops. Snow scoops are oversized shoveltype
scoops that are used to push snow away. Unit sales were scoops. Fixed overhead was applied at $ per unit produced. Fixed overhead was underapplied by
$ This fixed overhead variance was closed to Cost of Goods Sold. There was no variable overhead variance. The results of the year's operations are as follows on
an absorptioncosting basis:
Required:
Calculate the cost of the firm's ending inventory under absorption costing. Round unit cost to five decimal places. Round your final answer to the nearest
dollar.
What is the cost of the ending inventory under variable costing? Round unit cost to five decimal places. Round your final answer to the nearest dollar.
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