In the previous year, a company’s total fixed manufacturing overhead costs were
January 12th, 2018
In the previous year, a company’s total fixed manufacturing overhead costs were$13,600 and its total variable production costs were $15,000. There were no units inbeginning inventory, 10,000 units were produced and 9,200 units were sold. Howmuch lower is the operating income for the previous year using direct (variable)costing versus absorption costing?