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Question - The following data are available for Marble Hill Factory for the year ended 31 December 2020.
Sales: 24,000 units at $50 each
Expected and actual production: 30,000 units
Manufacturing costs incurred, in the production of 30,000 units:
Variable: $525,000
Fixed: $372,000
Non-manufacturing costs incurred in the production of 30,000 units:
Variable: $144,800
Fixed: $77,400
Beginning inventories: none
Required -
A) Determine operating income using the variable-costing approach.
B) Determine operating income using the absorption-costing approach.
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