Reference no: EM132617311

Syarikat Maju had sales of 80,000 units at the sales price of RM10.00 per unit, and production of 100,000 units in July 2019. Other information for the year included:

Direct manufacturing labor                    RM187,500

Variable manufacturing overhead              100,000

Direct materials                                      150,000

Variable selling expenses                          100,000

Fixed administrative expenses 100,000 Fixed manufacturing overhead 200,000 There was no beginning inventory.

Required:

Problem a) Compute the operating income under variable costing and absorption costing methods for July 2019.

Problem b) For August 2019, the company produces 100,000 units and had sales 110,000 units. Other costs remain constant. Compute the operating income under variable costing and absorption costing methods for August 2019.