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What is the operating income using the variable-costing

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Reference no: EM132541245

Question - The following data are available for Lunar Company Limited for the year ended September 30, 2019.

Sales: 24,000 units at £50 each

Expected and actual production: 30,000 units

Manufacturing costs incurred:

Variable: £525,000

Fixed: £372,000

Non-manufacturing costs incurred:

Variable: £144,800

Fixed: £70,400

Beginning stock: zero

REQUIRED -

(a) What is the operating income using the variable-costing approach? Show all calculations.

(b) What is the operating income using the absorption-costing approach. Show all calculations.

(c) How would you explain the cause of the differences? Show all calculations.

Reference no: EM132541245

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