THE DORSET CORPORATION

RECONCILIATION OF OPERATING INCOME

ABSORPTION AND VARIABLE COSTING

As per Variable Costing Profit 6,000

Add: Closing FG unit * Fixed FOH per unit 20,000
Less: Opening FG unit * Fixed FOH per unit -
As per Absorption costing profit 26,000

As per Absorption costing profit 26,000

Less: Closing FG unit * Fixed FOH per unit (20,000)
Add: Opening FG unit * Fixed FOH per unit -
As per Marginal Costing Profit 6,000