Hellman Manufacturing Has the Following Cost Information Available for 2009

Essay

Hellman Manufacturing has the following cost information available for 2009:
$\begin{array}{lr} \text { Direct materials } &\text {\( \$ 6.00 \) per unit}\\ \text { Direct labour } &\text {\( \$ 4.00 \) per unit}\\ \text { Variable manufacturing overhead} &\text {\( \$ 2.00 \) per unit}\\ \text { Variable selling and administrative costs } &\text {\( \$ 1.00 \) per unit}\\ \text { Fixed manufacturing overhead} &\$80000\\ \text {Fixed selling and administrative costs } &\$25000\\\end{array}$

During 2009,Merriman produced 12 500 units out of which 11 000 units were sold for $60 each.
Required:
A. Calculate Hellman's net income assuming the company uses variable costing.
B. Calculate Hellman's net income assuming the company uses absorption costing