Which formula reconciles the difference between absorption and variable-costing income?   a. Change in inventory units x predetermined variable-overhead rate per unit. b. Change in inventory units / predetermined variable-overhead rate per unit. c. Change in inventory units x predetermined fixed-overhead rate per unit d. Change in inventory units / predetermined fixed-overhead rate per unit. e. Change in net income x fixed-overhead rate per unit

Q: Considering the data given above, under variable costing and absorption costing, ending inventory…

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: Operating profit is affected by changes in production under both the variable costing and absorption…

A: Operating profit is profit earned by the company from its primary or core purpose of the business.…

Q: a) Classify each cost as either variable or fixed with respect to the number of units produced and…

A: Variable costs are those costs which varies with output. It must be noted here that variable cost…

Q: Which of the following is not relevant is not relevant in determining weighted average unit cost in…

A: Equivalent unit of production in beginning inventory is irrelevant because the total beginning…

Q: a. Prepare an income statement according to the absorption costing concept. b. Prepare an income…

A: The income statement represents the net income where the expenses are deducted from the revenues of…

Q: Gross profit is disclosed on an income statement prepared using O a) Variable costing. O b)…

A: Gross profit is disclosed on an income statement prepared using Direct Costing method.... Option C…

Q: Which of the following statements is true? Multiple Choice Product costs and variable costs are…

A: Product cost means the cost which are incurred to create a product that is intended for sale to the…

Q: When units produced exceeds units sold, a. net income under absorption costing is higher than net…

A: If units produced > units sold There will be ending inventory. Some part of the fixed factory…

Q: If inventory increased during the year, income reported under absorption costing: will be higher…

A: Solution: If inventory increased during the year, income reported under absorption costing "will be…

Q: When inventory increases, the fixed manufacturing overhead is deferred in inventory under:"…

A: Under Variable costing method, only variable cost is assigned to inventory.

Q: Under variable costing, fixed manufacturing overhead is Select one: a. never expensed b. expensed…

A: Solution: - Introduction: - Variable costing method that includes only variable manufacturing costs…

Q: In comparing the absorption and variable cost methods, each of the following statements is true…

A: Variable Costing: The variable costing is a method used to allocate the fixed manufacturing overhead…

Q: d. Explain why there is or is not a difference in the net income amounts in the two income…

A: Absorption costing and variable costing are two costing methods under which the major difference…

Q: First: The inventory value shown on the balance sheet is generally higher under absorption costing…

A: Under variable costing, product cost consists of only variable manufacturing costs.  Under…

Q: When the number of units sold exceed the number of units produced, income reported under absorption…

A: Fixed overhead costs include those costs which shall not vary with the production output. In…

Q: Why is variable costing not in compliance with generally accepted accounting principles? a. Fixed…

A: The generally accepted accounting principles are following the absorption method for the valuation…

Q: Under variable costing, which of the following costs are assigned to inventory?  Variable Selling &…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Required: Compute the ending inventory (February) under variable costing. Compute the ending…

A: Here in this question, we are required to calculate closing stock for the month of February by…

Q: TRUE OR FALSE Net income under variable costing is unaffected by changes in production levels.

A: in variable costing fixed manufacturing overhead are exclude from the cost of production

Q: All these statements are true for Marginal costing except this O Costs are segregated based on…

A: Marginal costing refers to the costing approach in which, variable costs are considered as the…

Q: Net earnings determined using full absorption costing can be reconciled to net earnings determined…

A: In absorption costing, the cost of goods sold is determined after considering all the overheads,…

Q: variable costing

A: What will be the difference in net earnings computed using variable costing as opposed toabsorption…

Q: TRUE OR FALSE When units sold exceed, units produced, income under absorption costing is higher…

A: Absorption costing is the full costing method under which all the costs related to manufacturing are…

Q: Variable selling expenses are a. Product costs under variable costing but period costs under…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: o. Reconcile the variable costing income from operations of $357,500 with the absorption costing…

A: The question is based on the concept of Cost Accounting.

Q: How do you figure out the inventory on the Variable costing income statement?

A: The Income Statement is prepared by various methods one them is Variable Costing.

Q: When production is greater than sales, fixed manufacturing overhead costs are: a. Deferred in…

A: Variable Costing: Variable costing is the method of costing in which only the variable production…

Q: When production is greater than sales, fixed manufacturing overhead costs are a. Deferred in…

A: When production is greater than sales, fixed manufacturing overhead costs are deferred in inventory…

Q: Inventory values calculated using variable costing as opposed to absorption costing will generally…

A: Inventory is referred to as current asset which includes raw materials, work in process inventory…

Q: variable costing

A: Option a is wrong because even if there is no change in the fixed costs in the beginning and ending…

Q: ) What is the ending inventory (February) under variable costing? 2) What is the ending inventory…

A: The entity uses two types of costing systems, which are as follows: (1) Variable costing…

Q: EOQ focuses on the trade-off between A) carrying costs and delivery costs B) seasonality and steady…

A: EOQ is economic order quantity at which cost is minimum. Total cost consist of cost of order and…

Q: True or False. When the underapplied overhead is assigned to Cost of Goods Sold the effect is to…

A: Overheads: These are defined as the ongoing expenses that are incurred centrally in relation to a…

Q: 7. Under variable costing, which of the following costs are assigned to inventory? Variable Selling…

A: Hi Student Since there are multiple questions we will answer only first question. If you want…

Q: Which of the following statements is true for a company that uses variable costing?  Profit…

A: Profit fluctuates with sales  Profit increases with increases in sales and vice versa.  Product…

Q: b. Prepare a variable costing income statement for the three products. Enter a net loss as a…

A: Variable Costing Income Statement In this statement, contribution margin is computed by deducting…

Q: Which of the following is not relevant is not relevant in determining weighted average unit cost in…

A: Units completed are relevant to calculate the cost of units completed. Equivalent unit of production…

Q: TRUE OR FALSE Net income under variable costing is closely tied to changes in sales levels.

A: Fixed cost remains same under the variable costing. No matter how much units are produced, the total…

Q: Which of the following best describes a fixed cost?   A. It may only change in total when such…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: In comparing the absorption and variable cost methods, each of the following statements is true…

A: Variable Costing:The variable costing is a method used to allocate the fixed manufacturing overhead…

Q: What factor, related to manufacturing costs, causes the difference in net earnings computed using…

A: The question is related to Marginal Costing and is multiple choice question.

Q: Under variable costing: a. Net operating income will always be higher than under absorption costing.…

A: Under variable costing, the inventory cost is valuate on the basis of variable manufacturing cost…

Q: When production exceeds sales, a. Ending inventory under variable costing will exceed ending…

A: Option no. (b) is correct.

Q: methods. variable costing system, fixed overhead cost is included of the cost of inventory.…

A: Option a, c and d are incorrect The correct statements are a) In variable and absorption costing ,…

Q: When reconciling variable costing and absorption costing net operating income, fixed overhead costs…

A: Solution: S1. When reconciling variable costing and absorption costing net operating income, fixed…

Q: When units produced are less than units sold, income under absorption costing is higher than income…

A: The income statement can be prepared using various methods as variable costing and absorption…

Q: When overhead is overapplied, is the balance of Cost of Goods Sold, before adjustment, too low ortoo…

A: The cost of goods that have been sold in a particular period are known as the cost of goods sold…