Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved...
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Accounting
Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:
Direct material per unit $20
Direct labor per unit 12
Variable manufacturing overhead per unit 10
Fixed manufacturing overhead per year $148,500
In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. Ignoring taxes, how much will full costing profit differ from variable costing profit? Please provide full calculation
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