Reference no: EM132979208

Question - Covington Manufacturing produces snow shovels. The selling price per snow shovel is $33.00. There is no beginning inventory.

Costs involved in production are:

Direct material $5.00

Direct labor 5.00

Variable manufacturing overhead 4.00

Total variable manufacturing costs per unit $14.00

Fixed manufacturing overhead per year $155,150

In addition, the company has fixed selling and administrative costs of $154,600 per year.

During the year, Covington produces 53,500 snow shovels and sells 48,350 snow shovels.

Calculate the difference in full costing net income and variable costing net income without preparing either income statement.