Wool Creations Inc. manufactures wool sweaters. Costs incurred in making 9,600 sweaters in October included $36,000 of fixed

manufacturing overhead. The total absorption cost per sweater was $10.10.

a. Calculate the variable cost per sweater. (Round intermediate calculations and final answer to 2 decimal places.)

Variable cost per sweater: 6.35

b. The ending inventory of sweaters was 1,500 units lower at the end of the month than at the beginning of the month. By how much

and in what direction (higher or lower) would cost of goods sold fel the month of October be different under variable costing than

under absorption costing? (Round intermediate calculations to 2 decimal places.)

Cost of goods sold under variable costing will be:__________ Lower

c. Express the sweater cost in a cost formula. (Round your intermediate calculations and "Variable cost" to 2 decimal places.)

Total cost =_________ + (__________x number of sweaters)