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Managerial Accounting:Absorption costing VS variable costing

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Abbitt Company, which has only one product, has provided the following data concerning its most recent month of operations:

19. What is the unit product cost for the month under variable costing?
A) $80
B) $119
C) $113
D) $86

20. What is the unit product cost for the month under absorption costing?
A) $86
B) $119
C) $113
D) $80

21. The total contribution margin for the month under the variable costing approach is:
A) $66,700
B) $128,800
C) $46,300
D) $142,600

22. The total gross margin for the month under the absorption costing approach is:
A) $11,500
B) $66,700
C) $89,300
D) $128,800

23. What is the net operating income for the month under variable costing?
A) $4,900
B) $11,500
C) $6,600
D) ($11,100)

24. What is the net operating income for the month under absorption costing?
A) ($11,100)
B) $11,500
C) $6,600
D) $4,900

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Solution Summary

Solution contains calculations of contribution margin ,cost per unit and net operating income under absorption costing and variable costing.

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