Under absorption costing, we allocate $1 of FOH to each carton produced.

Therefore, we have 50,000 cartons available for sale, each with $1 of FOH. O!" thus includes $#0,000 of FOH and inventor$ includes $10,000 of FOH. Under variable costing, the $%0,000 in actual FOH are all allocated to the current &uarter O!", and there are no FOH costs in inventor$.