{"id":6367,"date":"2020-11-14T17:35:24","date_gmt":"2020-11-14T17:35:24","guid":{"rendered":"http:\/\/onlineclassesguru.com\/?p=6367"},"modified":"2020-11-14T17:35:24","modified_gmt":"2020-11-14T17:35:24","slug":"variable-costing-and-absorption-costing-net-income-amounts-differ","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/","title":{"rendered":"variable costing and absorption costing net income amounts differ"},"content":{"rendered":"<style type=\"text\/css\"><\/style><p>Federal Mixing<br \/>\nFederal Mixing (FM) is a division of Federal Chemicals, a large diversified chemical company. FM provides mixing services for both outside customers and other Federal divisions. FM buys or receives liquid chemicals and combines and packages them according to the customer\u0092s specifications. FM computes its divisional net income on both a fully absorbed and variable costing basis. For the year just ending, it reported<br \/>\nNet Income<br \/>\nAbsorption costing $ 13,800.000<br \/>\nVariable costing 12.600.000<br \/>\nDifference $ 1.200.000<br \/>\nOverhead is assigned to products using machine hours.<br \/>\nThere is no finished goods inventory at FM. only work-in-process (WIP) inventory. As soon as a product is completed, it is shipped to the customer. The beginning inventory based on absorption costing was valued at $6.3 million and contained 70,()()() machine hours. The ending WIP inventory based on absorption costing was valued at $9.9 million and contained 90,000 machine hours.<br \/>\nRequired:<br \/>\nWrite a short nontechnical note to senior management explaining why variable costing and absorption costing net income amounts differ.<\/p>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcTyj99p60XCLyLk1htB7-1neRt8-2QdnenNlQ&usqp=CAU\"target=\"_http:\/\/onlineclassesguru.com\/orders\/ordernow\"\/><\/center><p>","protected":false},"excerpt":{"rendered":"<p>Federal Mixing Federal Mixing (FM) is a division of Federal Chemicals, a large diversified chemical company. FM provides mixing services for both outside customers and other Federal divisions. FM buys or receives liquid chemicals and combines and packages them according to the customer\u0092s specifications. FM computes its divisional net income on both a fully absorbed&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6367","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>variable costing and absorption costing net income amounts differ - onlineclassesguru<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"variable costing and absorption costing net income amounts differ - onlineclassesguru\" \/>\n<meta property=\"og:description\" content=\"Federal Mixing Federal Mixing (FM) is a division of Federal Chemicals, a large diversified chemical company. FM provides mixing services for both outside customers and other Federal divisions. FM buys or receives liquid chemicals and combines and packages them according to the customer\u0092s specifications. FM computes its divisional net income on both a fully absorbed...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/\" \/>\n<meta property=\"og:site_name\" content=\"onlineclassesguru\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-14T17:35:24+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin_admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/onlineclassesguru.com\/#website\",\"url\":\"https:\/\/onlineclassesguru.com\/\",\"name\":\"onlineclassesguru\",\"description\":\"Cheap Professional coursework and reaction papers help\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/onlineclassesguru.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/#webpage\",\"url\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/\",\"name\":\"variable costing and absorption costing net income amounts differ - onlineclassesguru\",\"isPartOf\":{\"@id\":\"https:\/\/onlineclassesguru.com\/#website\"},\"datePublished\":\"2020-11-14T17:35:24+00:00\",\"dateModified\":\"2020-11-14T17:35:24+00:00\",\"author\":{\"@id\":\"https:\/\/onlineclassesguru.com\/#\/schema\/person\/1831fa4d28e47b468621cf27932f5742\"},\"breadcrumb\":{\"@id\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/onlineclassesguru.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"variable costing and absorption costing net income amounts differ\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/onlineclassesguru.com\/#\/schema\/person\/1831fa4d28e47b468621cf27932f5742\",\"name\":\"admin_admin\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/onlineclassesguru.com\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/429c8d043f7a770af242b0031e8b9f2b?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/429c8d043f7a770af242b0031e8b9f2b?s=96&d=mm&r=g\",\"caption\":\"admin_admin\"},\"url\":\"https:\/\/onlineclassesguru.com\/index.php\/author\/admin_admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"variable costing and absorption costing net income amounts differ - onlineclassesguru","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/","og_locale":"en_US","og_type":"article","og_title":"variable costing and absorption costing net income amounts differ - onlineclassesguru","og_description":"Federal Mixing Federal Mixing (FM) is a division of Federal Chemicals, a large diversified chemical company. FM provides mixing services for both outside customers and other Federal divisions. FM buys or receives liquid chemicals and combines and packages them according to the customer\u0092s specifications. FM computes its divisional net income on both a fully absorbed...","og_url":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/","og_site_name":"onlineclassesguru","article_published_time":"2020-11-14T17:35:24+00:00","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin_admin","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/onlineclassesguru.com\/#website","url":"https:\/\/onlineclassesguru.com\/","name":"onlineclassesguru","description":"Cheap Professional coursework and reaction papers help","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/onlineclassesguru.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/#webpage","url":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/","name":"variable costing and absorption costing net income amounts differ - onlineclassesguru","isPartOf":{"@id":"https:\/\/onlineclassesguru.com\/#website"},"datePublished":"2020-11-14T17:35:24+00:00","dateModified":"2020-11-14T17:35:24+00:00","author":{"@id":"https:\/\/onlineclassesguru.com\/#\/schema\/person\/1831fa4d28e47b468621cf27932f5742"},"breadcrumb":{"@id":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/14\/variable-costing-and-absorption-costing-net-income-amounts-differ\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/onlineclassesguru.com\/"},{"@type":"ListItem","position":2,"name":"variable costing and absorption costing net income amounts differ"}]},{"@type":"Person","@id":"https:\/\/onlineclassesguru.com\/#\/schema\/person\/1831fa4d28e47b468621cf27932f5742","name":"admin_admin","image":{"@type":"ImageObject","@id":"https:\/\/onlineclassesguru.com\/#personlogo","inLanguage":"en-US","url":"https:\/\/secure.gravatar.com\/avatar\/429c8d043f7a770af242b0031e8b9f2b?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/429c8d043f7a770af242b0031e8b9f2b?s=96&d=mm&r=g","caption":"admin_admin"},"url":"https:\/\/onlineclassesguru.com\/index.php\/author\/admin_admin\/"}]}},"_links":{"self":[{"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/posts\/6367"}],"collection":[{"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/comments?post=6367"}],"version-history":[{"count":1,"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/posts\/6367\/revisions"}],"predecessor-version":[{"id":6368,"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/posts\/6367\/revisions\/6368"}],"wp:attachment":[{"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/media?parent=6367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/categories?post=6367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/onlineclassesguru.com\/index.php\/wp-json\/wp\/v2\/tags?post=6367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}