Question
Variable costingproduction exceeds sales Fixed manufacturing costs are $51 per unit, and variable manufacturing costs are $153 per unit. Production was 149,000 units, while sales
Variable costing—production exceeds sales Fixed manufacturing costs are $51 per unit, and variable manufacturing costs are $153 per unit. Production was 149,000 units, while sales were 141,550 units.
Determine:
(a) whether variable costing income from operations is less than or greater than absorption costing income from operations, and
(b) the difference in variable costing and absorption costing income from operations.
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Financial and Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
12th edition
978-1133952428, 1285078578, 1133952429, 978-1285078571
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