The amount by which absorption and variable costing income statements will differ is reconcilable to:
a. fixed manufacturing overhead costs per unit x the difference in units budgeted versus sold
b. variable manufacturing overhead costs per unit x the difference in units budgeted versus sold
Selected: c. fixed manufacturing overhead costs per unit x the change in ending inventory This answer is correct.
d. variable manufacturing overhead costs per unit x the change in ending inventory
Correct! Difference in absorption versus variable costing income statements is the fixed manufacturing overhead per unit x change in ending inventory for the period.