Variable and absorption costing, explaining operating profit differences. (40 min) 1 Key inputs for profit statement calculations are January February March Opening stock Production Goods available for sale Units sold Closing stock 0 1,000 1,000 700 300 300 800 1,100 800 300 300 1,250 1,550 1,500 50 The unit fixed and total manufacturing costs per unit under absorption costing are January February March (a) Fixed manufacturing costs b) Units produced cab) Unit fixed manufacturing costs d) Unit variable manufacturing costs e) = (c) + (d) Unit total manufacturing costs DKr 400,000 DKr 1,000 DKr 400 DKr 900 DKr 1,300 DKr 400,000 DKr 800 DKr 500 DKr 900 DKr 1,400 DKr 400,000 DKr 1,250 DKr 320 DKr 900 DKr 1,220
