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Jasper Enterprises had the following cost and production information for April: ...

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Accounting

Jasper Enterprises had the following cost and production information for April:

Units Produced

20,000
Units Sold

16,000
Unit Sales Price $

210
Manufacturing Cost Per Unit
Direct Material $

20
Direct Labor $

35
Variable Manufacturing Overhead $

16
Fixed Manufacturing Overhead ($460,000/20,000) = $

23
Full Manufacturing Cost Per Unit $

94
Nonmanufacturing Costs
Variable Selling Expenses $

106,000
Fixed General and Administrative Costs $

67,000

How much greater will Jasper Enterprises' income be under absorption costing than under variable costing?

Multiple Choice

  • $388,800

  • $92,000

  • $460,000

  • $368,000

Answer & Explanation Solved by verified expert
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