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1.

Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1
Sales			$1,224,000
Variable cost of goods sold:
Variable cost of goods manufactured	$678,500
Inventory, March 31	(92,000)
Total variable cost of goods sold			(586,500)
Manufacturing margin			$637,500
Total variable selling and administrative expenses			(147,900)
Contribution margin			$489,600
Fixed costs:
Fixed manufacturing costs	$312,700
Fixed selling and administrative expenses	96,900
Total fixed costs			(409,600)
Operating income			$80,000

Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.

Variable costing
Absorption costing

2.

Analyzing Income under Absorption and Variable Costing

Variable manufacturing costs are $76 per unit, and fixed manufacturing costs are $218,400. Sales are estimated to be 8,000 units.

If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar.

a. How much would absorption costing operating income differ between a plan to produce 8,000 units and a plan to produce 10,400 units? $

b. How much would variable costing operating income differ between the two production plans? $

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