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Grainger Company produces only one product and sells that product for $110 per unit. Cost information...

Grainger Company produces only one product and sells that product for $110 per unit. Cost information for the product is as follows:

Direct Material $16 per Unit
Direct Labor $25 per Unit
Variable Overhead $6 per Unit
Fixed Overhead $26,800

Selling expenses are $5 per unit and are all variable. Administrative expenses of $20,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no beginning inventory.

A. Compute net income under

i. Absorption Costing $

ii. Variable Costing    $

B. Which costing method provide higher net income? By how much?

The   method provided more net income by $ .

Business   Accounting   
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