Explore BrainMass

Explore BrainMass

    Managerial Accounting:Absorption costing VS variable costing

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    © BrainMass Inc. brainmass.com June 3, 2020, 7:20 pm ad1c9bdddf
    https://brainmass.com/business/accounting/managerial-accounting-absorption-costing-vs-variable-costing-94002

    Attachments

    Solution Summary

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

    $2.19

    ADVERTISEMENT