Operating income under absorption costing


Last year, Ben Company's operating income under absorption costing was $4,400 lower than its operating income under variable costing. The company sold 8,000 units during the year, and its variable costs were $8 per unit, of which $3 was variable selling expense. Fixed manufacturing overhead was $1 per unit in beginning inventory under absorption costing. Ending inventory was zero. How many units did the company produce during the year?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Operating income under absorption costing
Reference No:- TGS055834

Expected delivery within 24 Hours