Question

Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are...

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 income from operations is less than or greater than absorption costingincome from operations.

Variable costing income from operations is greater than absorption costing.

Variable costing income from operations is less than absorption costing.

b. Determine the difference in variable costing and absorption costing income from operations.
$

1 0
Add a comment Improve this question Transcribed image text
Answer #1

Requirement(a)- Whether variable costing income from operations is less than or greater than absorption costing income from operations.

Variable costing income from operations is less than absorption costing.

Requirement (b)- The difference in variable costing and absorption costing income from operations

The difference in variable costing and absorption costing income from operations = [The Production Quantity – Sales Quantity] x Fixed manufacturing cost per unit

= [67,200 Units – 50,400 Units] x $44 per unit

= 16,800 Units x $44 per unit

= $739,200

“The difference in variable costing and absorption costing income from operations = $739,200”

Add a comment
Know the answer?
Add Answer to:
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • PE 5-2A OBJ. 1 EE 5-2 p. 186 Variable costing-production exceeds sales Fixed manufacturing costs are...

    PE 5-2A OBJ. 1 EE 5-2 p. 186 Variable costing-production exceeds sales Fixed manufacturing costs are $60 per unit, and variable manufacturing costs are $150 per unit. Production was 453,000 units, while sales were 426,000 units. Determine (a) whether variable costing income from operations is less than or greater than absorption costing income from operations, and (b) the difference in variable costing and absorption costing income from operations. ow t inc. fer C.M-150

  • P=&takeAssignmentSessionLocator a&inprogress... * Homework, Chapter 21 eBook 14 Show Me How Calculator Print Item Variable Costing-Production...

    P=&takeAssignmentSessionLocator a&inprogress... * Homework, Chapter 21 eBook 14 Show Me How Calculator Print Item Variable Costing-Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $132 per unit. Production was 140,000 units, while sales were 133,000 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....

  • Variable Costing-Sales Exceed Production The beginning inventory is 24,100 units. All of the units that were...

    Variable Costing-Sales Exceed Production The beginning inventory is 24,100 units. All of the units that were manufactured during the period and 24,100 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $62 per unit, and variable manufacturing costs are $110 per unit. 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.

  • Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $74 per unit, and fixed...

    Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $74 per unit, and fixed manufacturing costs are $58,500. Sales are estimated to be 4,300 units. f an amount is zero, enter "O". Do not round interim calculations. Round final answer to nearest whole dollar. a. How much would absorption costing income from operations differ between a plan to produce 4,300 units and a plan to produce 6,500 units? b. How much would variable costing income from operations differ...

  • Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $104 per unit, and fixed...

    Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $104 per unit, and fixed manufacturing costs are $54,400. Sales are estimated to be 5,700 units. If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar. a. How much would absorption costing income from operations differ between a plan to produce 5,700 units and a plan to produce 6,800 units? $ b. How much would variable costing income from operations...

  • OBJ. 2 anable manufacturing costs are $126 per unit, and fixed manufacturing costs are Sales are...

    OBJ. 2 anable manufacturing costs are $126 per unit, and fixed manufacturing costs are Sales are estimated to be 10,000 units. $157,500. EE 5-4o 19! PE 5-4B Analyzing income under absorption and variable costing ". How much would absorption costing income from operations differ between a plat to produce 10,000 units and a plan to produce 15,000 units? ". How much would variable costing income from operations differ between the b ow production plans? OBL4

  • myCampus Securo. Coastal Carolina C... 2 UNCWZoom-V. eBook 3 Show Me How Calculator Variable Costing-Sales Exceed...

    myCampus Securo. Coastal Carolina C... 2 UNCWZoom-V. eBook 3 Show Me How Calculator Variable Costing-Sales Exceed Production Assig The beginning inventory is 23,300 units. All of the units that were manufactured during the period and 23,300 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $50 per unit, and variable manufacturing costs are $103 per unit. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. Variable costing...

  • 1.       Howley Company has the following information for April:                           &n

    1.       Howley Company has the following information for April:                                                  Sales                            $912,000                         VC of goods sold           474,000                         FC – mfg.                          82,000                         VC – selling & adm.       238,000                         FC – selling & adm.          54,700      Determine: The Manufacturing Margin The Contribution Margin Operating Income for Howley during the month of April. 2.       FC Mfg.       $44/unit             VC Mfg.      $100/unit             Production     67,200 units             Sales              50,400             Determine: Whether Variable Costing operating income is less than or greater than Absorption Costing operating income.    The value difference of in Operating Income when using Variable Costing as opposed...

  • Variable and Absorption Costing Scott Manufacturing makes only one product with total unit manufacturing costs of...

    Variable and Absorption Costing Scott Manufacturing makes only one product with total unit manufacturing costs of $59, of which $41 is variable. No units were on hand at the beginning of 2015. During 2015 and 2016, the only product manufactured was sold for $93 per unit, and the cost structure did not change. Scott uses the first-in, first-out inventory method and has the following production and sales for 2015 and 2016 2015 Units Manufactured Units Sold 120,000 90,000 120,000 130,000...

  • Variable and Absorption Costing Scott Manufacturing makes only one product with total unit manufacturing costs of...

    Variable and Absorption Costing Scott Manufacturing makes only one product with total unit manufacturing costs of $57, of which $39 is variable. No units were on hand at the beginning of 2015. During 2015 and 2016, the only product manufactured was sold for $89 per unit, and the cost structure did not change. Scott uses the first-in first-out inventory method and has the following production and sales for 2015 and 2016 Units Manufactured Units Sold 90,000 20,000 130,000 2015 120,000...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT