In the coming year, Imre Company expects to sell 56,900 units at $26 each. Imre's controller
provided the following information for the coming year.
Units production 60,000
Unit direct materials $9.30
Unit direct labor $2.75
Unit variable overhead $1.65
Unit ?xed overhead* $2.50
Unit selling expense (variable) $2.00
Total ?xed selling expense $65,500
Total ?xed administrative expense $244,000
*The unit ?xed overhead is based on 60,000 units produced.
Required:
1. Calculate the cost of one unit of product under absorption costing.
2. Calculate the cost of one unit of product under variable costing.
3. Calculate operating income under absorption costing for next year.
4. Calculate operating income under variable costing for next year.