Alex Company reports variable manufacturing costs of $155 per unit and fixed overhead of $15 per unit. The company produced 27,000 units and sold 24,000 units. The company had no beginning finished goods inventory.
(a) Determine whether absorption costing income is greater than or less than variable costing income.
(b) Compute the difference in income between absorption costing income and variable costing income.
a. Determine whether absorption costing income is greater than or less than variable costing income.
Whether absorption costing income is greater than or less than variable costing income.
b. Compute the difference in income between absorption costing income and variable costing income. (Leave no cells blank - be certain to enter "0" wherever required.)
Fixed overhead in ending FG inventory
Fixed overhead in beginning FG inventory
Difference between absorption costing and variable costing income
