Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Swifty Company incurred the following costs during the year: Direct materials $24.40 per unit
Direct labor $13.10 per unit
Variable manufacturing overhead $16.00 per unit
Variable selling and administrative costs $11.00 per unit
Fixed manufacturing overhead $132,000
Fixed selling and administrative costs $12,000.
Swifty produced 6,600 units and sold 6000 units.
A) Absorption costing= direct material + direct labor + variable overhead + fixed overhead
Absorption costing= 24.4 + 13.1 + 16 + (132,000/6,600)= $73.5
B) Variable costing= direct material + direct labor + variable overhead + Variable selling and administrative costs
Variable costing= 24.4 + 13.1 + 16 + 11= $64.5
