Al Boom Marine produce small underwater cameras for snorkeling and scuba diving. The costs related to producing the came

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Al Boom Marine Produce Small Underwater Cameras For Snorkeling And Scuba Diving The Costs Related To Producing The Came 1 (60.05 KiB) Viewed 29 times

Al Boom Marine produce small underwater cameras for snorkeling and scuba diving. The costs related to producing the cameras are: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses AED 90.00 per unit 57.00 per unit 14.00 per unit 6.00 per unit 540,000 118,000 The cameras sell for AED 550 each. At the beginning of the year the company had 300 cameras in inventory. During the year 2017 the company produced 12,000 cameras and sold 10,500 cameras. (0) Calculate unit product using the absorption costing method (5 Marks) (ii) Calculate operating income using the absorption costing method (10 Marks) (iii) Calculate unit product using the variable costing method (4 Marks). (iv) Calculate operating income using the variable costing method (16 Marks). (v) Find the difference between the operating income based on absorption costing and the operating income based on variable costing and give an explanation as to what causes the difference (reconcile the difference) 0 В 1 U