Question

Montana Industries has computed the following unit costs for the year just ended: Variable manufacturing overhead $85 Fixed manufacturing overhead 20 Variable selling and administrative cost 18 Fixed selling and administrative cost 11 Which of the following choices correctly depict amounts included in the per-unit cost of inventory under variable costing and absorption costing? Variable, $85; absorption, $116. Variable, $103; absorption, $105. None of the answers is correct. Variable, $103; absorption, $116. Variable, $85; absorption, $105.

Answer 1

Variable, $85; absorption, $105.

Step-by-step explanation:

Variable costing $85

Absorption costing $105=(85+20)