Outback Corporation manufactures tactical LED flashlights in
Brisbane, Australia. The firm uses an absorption costing system for
internal reporting purposes; however, the company is considering
using variable costing. Data regarding Outback’s planned and actual
operations for 20x1 follow:
Budgeted Costs
Per Unit
Total
Actual Costs
Direct material
$
13.10
$
1,807,800
$
1,650,600
Direct labor
9.50
1,311,000
1,197,000
Variable manufacturing overhead
4.90
676,200
617,400
Fixed manufacturing overhead
4.80
662,400
674,400
Variable selling expenses
7.50
1,035,000
907,500
Fixed selling expenses
7.10...