How much income should elizabeth and her supervisor report


Question: Elizabeth just finished putting together the performance report for her division using standard costs within a variable costing system. Operating income is $1,600 for this period, when there was a decrease in FG Inventory of 600 units. Elizabeth reports fixed-MOH costs of $17,120. She is happy to find there are no variable cost variances this period, and actual production equaled budgeted production of 4,280 units. Last period's inventory carried the same cost per unit as this period's production. Elizabeth's supervisor wants her to determine operating income under absorption costing instead, so they can compare results before finalizing external financial statements. How much income should Elizabeth and her supervisor report under absorption costing? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e g. (45).) Operating income under absorption costing $

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Microeconomics: How much income should elizabeth and her supervisor report
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