Sea Star Company manufactures diving masks with a variable cos of $203 The masks

Question

Sea Star Company manufactures diving masks with a variable cos of $203 The masks sell for 5365 Budgeted flooed manufacturing overhead for the most recent year was $2 53,000 Actual production was qlto planned production Required State whether operating Income is higher under varable or costing and the amount of the erence in reported operating income under the two methods Treat each condision as an Indpendent 1. Production 22.000 units Sales 21 units Production 10.300 unts .300 units Production 11,000 uns Sales 9150 units Sales 10 Absorpon couting

Explanation / Answer

1 Variable costing 132250 =(2530000/22000)*1150 2 Same under both 0 3 Absorption costing 425500 =(2530000/11000)*1850

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.