Radlin Inc

question 22

Essay

Radlin Inc. has just completed its first year of operations. The unit costs on a normal costing basis are as follows:
__________________________________________________________________ Actual fixed overhead was $170,000 for the year and actual variable overhead was $72,000. Budgeted fixed overhead was $180,000 and the company used an expected activity level of 40,000 direct labour hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold.
a. Compute the unit cost under:
(i) absorption costing
(ii) variable costing
b. Prepare an absorption-costing income statement.
c. Prepare a variable-costing income statement.
d. Reconcile the difference between the two income statements.

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Definitions:

Body Alignment

The optimal placement of body parts so that the bones and joints are in correct anatomical position, minimizing strain and maximizing function.

Equilibrium

A state of physical balance or a condition where all competing influences are balanced.

Arterial Insufficiency

A condition characterized by inadequate blood flow through the arteries, typically affecting the legs and leading to symptoms like pain, skin changes, and wounds that do not heal.

Paralysis

The loss of muscle function in part of the body, often resulting from damage to the central nervous system.