Consider the following information for Presidio Inc.'s most recent year of operations. Additional information for Presidio's most recent year of operations follows:
| |
| Number of units produced |
|
2,000 |
| Number of units sold |
|
1,300 |
| Unit sales price |
$ |
650.00 |
| Direct materials per unit |
|
60.00 |
| Direct labor per unit |
|
90.00 |
| Variable manufacturing overhead per unit |
|
40.00 |
| Fixed manufacturing overhead per unit ($235,000 ÷ 2,000 units) |
|
117.50 |
| Total variable selling expenses ($10 per unit sold) |
|
13,000.00 |
| Total fixed general and administrative expenses |
|
70,000.00 |
2. Complete a full absorption costing income statement and a variable costing income statement for Presidio. Assume there was no beginning inventory.
3. Compute the difference in profit between full absorption costing and variable costing.