Variable Costing-Production Exceeds Sales Fixed manufacturing costs are $41 per unit, and variable manufacturing costs are $123 per unit. Production was 96,000 units, while sales were 90,240 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. Variable costing operating income is less than absorption costing. b. Determine the difference in variable costing and absorption costing operating income. 2,040,960 X
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- Grainger Company produces only one product and sells that product for $100 per unit. Cost information for the product is: Selling expenses are $4 per unit and are all variable. Administrative expenses of $20,000 are all fixed. Grainger produced 5,000 units; sold 4,000; and had no beginning inventory. A. Compute net income under absorption costing variable costing B. Reconcile the difference between the income under absorption and variable costing.Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $47 per unit, and variable manufacturing costs are $141 per unit. Production was 98,000 units, while sales were 94,080 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. b. Determine the difference in variable costing and absorption costing operating income.$Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100 per unit. Production was 67,200 units, while sales were 50,400 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. b. Determine the difference in variable costing and absorption costing operating income.$fill in the blank 2
- Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units. If an amount is zero, enter "O" a. How much would absorption costing operating income differ between a plan to produce 10,000 units and a plan to produce 15,000 units? 141.75 X b. How much would variable costing operating income differ between the two production plans? 136.5 XVariable Costing—Production Exceeds Sales Fixed manufacturing costs are $40 per unit, and variable manufacturing costs are $120 per unit. Production was 130,000 units, while sales were 124,800 units. a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations. b. Determine the difference in variable costing and absorption costing income from operations.$fill in the blank 2Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $86 per unit, and fixed manufacturing costs are $193,200. Sales are estimated to be 6,900 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 6,900 units and a plan to produce 9,200 units? X b. How much would variable costing operating income differ between the two production plans? ✓
- Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $101 per unit, and fixed manufacturing costs are $128,700. Sales are estimated to be 7,800 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,800 units and a plan to produce 9,900 units? b. How much would variable costing operating income differ between the two production plans? $ 0Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $86 per unit, and fixed manufacturing costs are $64,800. Sales are estimated to be 5,400 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 5,400 units and a plan to produce 7,200 units? X b. How much would variable costing operating income differ between the two production plans? $ XBacon Mfg. has provided the following information. Units produced Units sold Selling price per unit Total Manufacturing Costs: Variable Fixed I Total Selling and Administration Variable Fixed 2020 1,000 825 $20.00 2,000 3,000 825 3,000 2021 1,000 875 $20.00 2,000 3,000 875 3,000 What is the difference in operating income between absorption and variable costing for 2021? a. Absorption income is $1,250 greater than variable income. b. Absorption income is $1,250 less than variable income. C. Absorption income is $375 greater than variable income. d. Absorption income is $2,125 greater than variable income.
- Potter Corporation produces one product. The following per unit cost information is available: Direct materials $ 7.00 Direct labor 15.00 Variable overhead 8.00 Variable Selling and Admin. 2.00 Fixed overhead costs are $100,000 per peiod and fixed selling and administrative costs are $70,000 per period. The selling price is $70 per unit. REQUIRED: A. Prepare an absorption costing (traditional) income statement assuming: 1. Production is 8,000 units and sales are 8,000 units. 2. Production is 8,000 units and salesa are 9,000 units. 3. Production is 8,000 units and sales are 6,000 units. Unit Sales 8,000 Sales Cost of Goods Sold Gross Profit Selling and Admin Net Income 9,000 6,000Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $99 per unit, and fixed manufacturing costs are $215,600. Sales are estimated to be 7,700 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,700 units ard a plan to produce 9,800 units? b. How much would variable costing operating income differ between the two production plans? 0 Feedback Check My Work a. Remember that under variable costing, regardless of whether 7,700 units or 9,800 units are manufactured, no fixed manufacturing costs are allocated to the units manufactured. Instead, all fixed manufacturing costs are treated as a period expense. Therefore the change in units times the per unit fixed costs for the greater production level is the difference in income between the two costing methods. b. Remember that since all…Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100 per unit. Production was 67,200 units, while sales were 50,400 units. Determine (a) whether variable costing operating income is less than or greater than absorption costing operating income, and (b) the difference in variable costing and absorption costing operating income.
