Compute the amount of fixed manufacturing overhead that


Question - The following data has been taken from Air-Tite Company in its first year of business.

Units produced 100,000

Units sold 80,000

Units in ending inventory 20,000

Fixed manufacturing overhead $400,000

(a) Compute the amount of fixed manufacturing overhead that would be expensed in the current year if full absorption costing is used.

(b) Compute the amount of fixed manufacturing overhead that would be expensed in the current year if variable costing is used.

(c) Compute the amount of fixed manufacturing overhead that would be included in ending inventory under full absorption costing.

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Accounting Basics: Compute the amount of fixed manufacturing overhead that
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