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Question - During the first year of operations, Kardesh Inc. produced only one product. The actual production quantity was the same as the budgeted production quantity. There was no cost variances during the year as the budgeted costs and the actual costs were the same during the year. The following data has been made available to you: Budgeted and actual production units 250,000 Number of units sold during the year 170,000 Budgeted DM cost per unit $10 Budgeted DL cost per unit $6 Budgeted Variable manufacturing OH cost per unit $3 Budgeted variable marketing cost per unit $13 Budgeted fixed manufacturing cost for the year $750,000 Budgeted fixed marketing cost for the year $420,000 Selling price per unit of the product $41 Fixed manufacturing cost is allocated using number of units of production.
Required -
a) Calculate the operating income using absorption costing.
b) Calculate the operating income using variable costing.
c) Calculate the operating income using throughput costing.
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