Home Base, Inc Assume That Productions Costs Have Remained the Same Since the

question 40

Essay

Home Base, Inc. reports the following production cost information. $$\begin{array} { l l } \text { Beginning inventory } & 10,000 \text { units } \\\text { Units produced } & 97,000 \text { units } \\\text { Units sold } & 92,000 \text { units } \\\text { Direct labor } & \$ 17 \text { per unit } \\\text { Direct materials } & \$ 34 \text { per unit } \\\text { Variable overhead } & \$ 2,522,000 \text { in total } \\\text { Fixed overhead } & \$ 1,940,000 \text { in total } \\\text { Operating costs } & \$ 2,000,000 \text { in total }\end{array}$$
Assume that productions costs have remained the same since the previous period and all units are sold for $137.00 per unit.
(a.) Compute production cost per unit under variable costing.
(b.) Compute production cost per unit under absorption costing.
(c.) Determine net income using variable costing.
(d.) Determine net income using absorption costing.

---

Definitions:

Ozone Loss

Ozone loss refers to the depletion of the ozone layer in the Earth's stratosphere, primarily caused by chemicals such as chlorofluorocarbons (CFCs), resulting in increased ultraviolet radiation reaching the Earth's surface.

Earth Summit

A conference that brings together leaders from around the world to discuss sustainable development and environmental protection.

Greenhouse Gas Emissions

The release of gases into the Earth's atmosphere, which trap heat and contribute to global warming and climate change.

Rio de Janeiro

A major city in Brazil known for its vibrant culture, stunning landscapes, and significant contributions to music, art, and tourism.