Q6 A company produced 10,000 units in March 2018 and sold 8,500
of them at $40 each. The variable manufacturing costs per unit was
$16 and the fixed cost per unit was $3
Variable selling and administrative expenses were $5 and the fixed
selling and administrative expenses were $45,000.
1. Using absorption costing what would be the income from
operations for March?
$_____________________________________________
1. Using variable costing what would be the income from operations
for March?
$_______________________________________________
C. Explain why the income from operations would be different under
absorption costing versus variable costing?
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