Question: Montier Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8 per unit), variable overhead ($5 per unit), fixed manufacturing ($225,000), and fixed selling and administrative ($30,000). In October 2014. Montier produced 25,000 units and sold 20,000 at $50 each.
Instructions: a. Prepare an absorption costing income statement.
b. Prepare a variable costing income statement.
c. Explain the difference In net income in the two income statements