Problem 8-35 Variable-Costing and Absorption-Costing Income
Statements (LO 8-2, 8-3, 8-4, 8-6)
Great Outdoze Company manufactures sleeping bags, which sell for
$67.00 each. The variable costs of production are as
follows:
Direct material
$
18.50
Direct labor
9.50
Variable manufacturing overhead
7.20
Budgeted fixed overhead in 20x1 was $169,400 and budgeted
production was 22,000 sleeping bags. The year’s actual production
was 22,000 units, of which 19,700 were sold. Variable selling and
administrative costs were $2.10 per unit sold; fixed selling...