Grainger Company produces only one product and sells that product for $110 per unit. Cost...
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Accounting
Grainger Company produces only one product and sells that product for $110 per unit. Cost information for the product is as follows:
Direct Material
$14
per Unit
Direct Labor
$25
per Unit
Variable Overhead
$4
per Unit
Fixed Overhead
$27,200
Selling expenses are $4 per unit and are all variable. Administrative expenses of $16,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no beginning inventory.
A. Compute net income under
i. Absorption Costing $. ??
ii. Variable Costing $. ??
B. Which costing method provide higher net income? By how much? ??
The absorption costing method provided more net income by $. ??
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