O Reviw Tet Brandy benhour-Googe Crome Secure | https/ AC3210 Managerial Cost Ac

Question

O Reviw Tet Brandy benhour-Googe Crome Secure | https/ AC3210 Managerial Cost Accounting Spring 2018 Brandy isentour | 4/1/18 11:16 AM unting Review Quiz: Chapter 9 Quiz Close Score: 0 of 1 pt 9of10? Test Score: 80%, 8 of 10 pts 9.2-20a Garfeld Company has the following information for the current year Beginning fxed manufacturing overhead in inventory Ending fixed manufacturing overhead in inventory $250,000 900,000 50,000 Beginning variable manufacturing overhead in inventory Variable manufacturing overhead in production Ending variable manufacturing overhead in inventory 525,000 110,000 70 000 What is the difference between operating incomes under absorption costing and variable costing? $110,000 $20.00 $200,000

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Difference between income under variable and absorption costing occur due to fixed manufacturing overhead i.e. In variable costing all fixed overhead are charged to current period while in absorption costing fixed overhead related to inventory not sold are carried to nect period Beginning Fixed Manufacturing overhead in inventory          250,000.00 Ending Fixed Manufacturing overhead in inventory            50,000.00 Difference in Income          200,000.00 It means income under variable costing would be more than income under absorption costing by 200,000

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