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# Managerial Accounting:Absorption costing VS variable costing

Abbitt Company, which has only one product, has provided the following data concerning its most recent month of operations:

19. What is the unit product cost for the month under variable costing?
A) \$80
B) \$119
C) \$113
D) \$86

20. What is the unit product cost for the month under absorption costing?
A) \$86
B) \$119
C) \$113
D) \$80

21. The total contribution margin for the month under the variable costing approach is:
A) \$66,700
B) \$128,800
C) \$46,300
D) \$142,600

22. The total gross margin for the month under the absorption costing approach is:
A) \$11,500
B) \$66,700
C) \$89,300
D) \$128,800

23. What is the net operating income for the month under variable costing?
A) \$4,900
B) \$11,500
C) \$6,600
D) (\$11,100)

24. What is the net operating income for the month under absorption costing?
A) (\$11,100)
B) \$11,500
C) \$6,600
D) \$4,900

#### Solution Summary

Solution contains calculations of contribution margin ,cost per unit and net operating income under absorption costing and variable costing.

\$2.19