Laser-Save recycles used toner cartridges for laser printers. 1) In October, 1,000 cartridges were recycled and sold: Direct materials Direct labor Variable overhead Fixed overhead $ 5/unit $15/unit $ 3/unit Variable selling & admin. Fixed selling & admin. Selling price a) Absorption costing i) Manufacturing cost/unit = ii) Operating income = b) Variable costing $20,000 $1.25/unit $12,000 1) Manufacturing cost/unit- ii) Operating income- iii) Ending inventory b) Variable costing $23/unit variable cost i) Manufacturing cost/unit = ii) Operating income = 2) In November, 1,250 cartridges were recycled and 1,000 were sold: a) Absorption costing $60/unit i) Manufacturing cost/unit ii) Operating income. iii) Ending inventory = c) Why is operating income higher under absorption costing than under variable costing? 2

Laser-Save recycles used toner cartridges for laser printers. 1) In October, 1,000 cartridges were recycled and sold: Direct materials Direct labor Variable overhead Fixed overhead $ 5/unit $15/unit $ 3/unit Variable selling & admin. Fixed selling & admin. Selling price a) Absorption costing i) Manufacturing cost/unit = ii) Operating income = b) Variable costing $20,000 $1.25/unit $12,000 1) Manufacturing cost/unit- ii) Operating income- iii) Ending inventory b) Variable costing $23/unit variable cost i) Manufacturing cost/unit = ii) Operating income = 2) In November, 1,250 cartridges were recycled and 1,000 were sold: a) Absorption costing $60/unit i) Manufacturing cost/unit ii) Operating income. iii) Ending inventory = c) Why is operating income higher under absorption costing than under variable costing? 2

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Description: Please do not give answer in image formate.solve question 2 complete Laser-Save recycles used toner cartridges for laser printers.1) In October, 1,000 cartridges were recycled and sold:Direct materialsDirect labor$ 5/unit$15/unit$ 3/unitVariable over

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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