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Question: Converting an Income Statement from Absorption Costing to Variable Costing Holden Corp. has the following income statement under standard absorption costing:
During the period Holden produced 130,000 units and sold 100,000 units. There was no beginning or ending WIP inventory. Budgeted fi xed factory overhead was $150,000, actual fi xed factory overhead was $90,000, and denominator level was 100,000 units. Holden does not prorate variances. Present a variable costing income statement. Be sure to list the amount of any variance in an adjustment for variances.
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