Solution-What is the amount of the absorption costing

What is the amount of the absorption costing

Reference no: EM132634462

Diego Company manufactures one product that is sold for $75 per unit. The following information pertains to the company's first year of operations in which it produced 57,000 units and sold 52,000 units.

Variable costs per unit:

Manufacturing:

Direct materials $25

Direct labour $18

Variable manufacturing overhead $3

Variable selling and administrative $5

Fixed costs per year:

Fixed manufacturing overhead $627,000

Fixed selling and administrative expenses $645,000

Question 1: What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?

Reference no: EM132634462

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What is the amount of the absorption costing

Reference no: EM132634462

Reference no: EM132634462

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