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Posted: December 1st, 2022
9-16 Variable and absorption costing, explaining operating-income differences.
9-16 Variable and absorption costing, explaining
operating-income differences.Nascar Motors assembles and sells motor vehicles
and uses standard costing. Actual data relating to April and May
2011 are:.png">The selling price per vehicle is $24,000. The budgeted level
of production used to calculate the budgeted fixed manufacturing cost per unit
is 500 units. There are no prices, efficiency, or spending variances. Any
production-volume variance is written off to cost of goods sold in the month in
which it occurs.1. Prepare April and May 2011 income statements for Nascar
Motors under (a) variable costing and (b) absorption costing.2. Prepare a numerical reconciliation and explanation of the
difference between operating income for
each month under variable costing and absorption costing
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