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Use a numerical example to Compute key amounts related to an activity-based costing system. Explain product costs under activity-based costing and conventional costing methods.

 

  1. Explain Major Difference between job and process costing

Determine key amounts related to a job order costing system.

  1. Use a numerical example to Compute key amounts related to an activity-based costing system.

Explain product costs under activity-based costing and conventional costing methods.

  1. Condit Corporation manufactures a variety of products. Variable costing net operating income was $75,600 last year and was $80,100 this year. Last year, inventory decreased by 3,400 units. This year, inventory increased by 3,000 units. Fixed manufacturing overhead cost is $5 per unit.

What was the absorption costing net operating income this year?

A $78100

B $95100

C $65100

D $73600