17 Which costing method, absorption or variable, would show higher operating income and bywhat amount? *Selected data concerning the operations of NUBD Company for the year endedDecember 31, 2021 is available as follows:[Units producedUnits soldDirect materials usedDirect labor incurredFixed factory overhead10,000 Variable factory overhead9,000 Fixed selling & admin. expP 40,000 Variable selling & admin. exp.P 20,000 Finished goods inventory, beg.P 25,000P12,00030,0004,500noneThere were no work in process inventory at the beginning and end of 2021.O Absorption costing, P2,500O Variable costing, P2,500O Absorption costing, P5,500Variable costing, P5,500

The difference of net income between absorption and variable costing only occurs due to fixed…

Answered: Which costing method, absorption or…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter19: Variable Costing (varcost)

Section: Chapter Questions

Problem 4R: To determine the effect of different levels of production on the company’s income, move to cell B7...

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Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
Summarized data for Backdraft Co. for its first year of operations are as follows: A. Prepare an income statement under absorption costing B. Prepare an income statement under variable costing
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