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The following information pertains to Brian Stone Corporation: Beginning fixed manufacturing overhead in inventory $60,000 Ending fixed manufacturing overhead in inventory 45,000 Beginning variable manufacturing overhead in $30,000 inventory Ending variable manufacturing overhead in inventory 14,250 Fixed selling and administrative costs $724,000 Units produced 5,000 units Units sold 4,800 units What is the difference between operating incomes under absorption costing and variable costing

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Answer:

$15,000

Explanation:

Calculation to determine What is the difference between operating incomes under absorption costing and variable costing

Using this formula

Rifference between operating incomes under absorption costing and variable costing=Beginning fixed manufacturing overhead in inventory -Ending fixed manufacturing overhead in inventory

Let plug in the formula

Diifference between operating incomes under absorption costing and variable costing=$60,000-$45,000

Diifference between operating incomes under absorption costing and variable costing=$15,000

Therefore the difference between operating incomes under absorption costing and variable costingis $15,000

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