McShane Inc.manufactures hair brushes that sell at wholesale for $6.00 per unit.Budgeted production in both 2009 and 2010 was 2,000 units and fixed overhead budgeted was $25,000 in each year.There was no beginning inventory in 2009.The following data summarized the 2009 and 2010 operations:

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Required:Determine income under both full costing and variable costing and explain the difference.
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 Feedback: Emerging Issue: Production Volume Variance 11ea6e70_bd64_709e_8f54_9575536d4c51_TB1699_00 The difference in operating income for 2010 ($34,750-$41,000 = -$6,250 = $12.50 x 500 11ea6e70_bd64_709f_8f54_4394ec121080_TB1699_00