Brantley Inc Required:
Determine Income Under Both Full Costing and Variable Costing

question 111

Essay

Brantley Inc. manufactures calculators that sell at wholesale for $60.00 per unit. Budgeted production in both 2018 and 2019 was 2,000 units and budgeted fixed overhead was $25,000 in each year. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: $\begin{array}{lcc} & 2018 & 2019 \\\text { Units sold } & 1,900 & 2,100 \\\text { Units produced } & 2,000 & 2,000\\\text { Costs: }\\\text { Variable factory overhead per unit } & \$ 20.20 & \$ 20.20 \\\text { Fixed factory overhead } & \$ 25,000& \$ 25,000 \\\text { Variable marketing per unit } & \$ 2.00& \$2.00 \\\text { Fixed Selling and Administrative } & \$ 10,000& \$ 10,000\end{array}$ Required:
Determine income under both full costing and variable costing and explain the difference.

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Definitions:

Variable-Ratio Schedule

A reinforcement schedule in which a response is rewarded after an unpredictable number of responses, leading to high and steady rates of response.

Postreinforcement Pause

A cessation of behavior following reinforcement on a ratio schedule, which is followed by resumption of responding at the intensity characteristic of that ratio schedule.

Behavioral Contrast

The phenomenon where the rate of response to one stimulus changes as a consequence of a change in reinforcement conditions for another stimulus.

Variable-Interval Schedule

A Variable-Interval Schedule is a type of reinforcement schedule where responses are reinforced after varying intervals of time, making the reinforcement unpredictable.