comparative income statements mdash variable and absorption costing using the inform 729565
Comparative income statements—variable and absorption costing
Using the information presented in E10 1, prepare comparative income statements for March (a) under absorption costing and (b) under variable costing.
E10 1
|
Direct materials |
$200,000 |
|
Direct labor |
$100,000 |
|
Variable factory overhead |
$80,000 |
|
Fixed factory overhead |
$60,000 |
|
Selling and administrative expenses |
$40,000 |
|
Units produced |
25,000 |
|
Units sold |
20,000 |
|
Selling price per unit |
25 |