Budgeting and Standard Costing – Quiz

(TCO 5) The following information relates to Vice Versa Ventures for calendar year 20XX, the company’s first year of operations:

Units produced


Units sold


Selling price per unit


Direct material per unit


Direct labor per unit


Variable manufacturing overhead per unit


Variable selling cost per unit


Annual fixed manufacturing overhead


Annual fixed selling and administrative expenses


(a) Prepare an income statement using full costing.

(b) Prepare an income statement using variable costing.