2001:05:03McGrawHillAssume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations:Per Unit$ 200$ 76$ 50$ 10$ 8Multiple ChoicePer YearSelling priceDirect materialsDirect laborVariable manufacturing overheadSales commissionFixed manufacturing overheadWhich of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income?$ 291,000The absorption costing net operating income will be lower than the variable costing net operating income by $29,100.The absorption costing net operating income will be lower than the variable costing net operating income by $101,100.The absorption costing net operating income will be higher than the variable costing net operating income by $29,100.The absorption costing net operating income will be higher than the variable costing net operating income by $101,100.Prev20 of 25Next >

Absorption Costing: All manufacturing costs, including fixed manufacturing overhead, are treated as…

Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year $ 200 Selling price Direct materials Direct labor Variable manufacturing overhead $76 $ 50 Multiple Choice $ 10 $8 Sales commission Fixed manufacturing overhead $ 291,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? The absorption costing net operating income will be lower than the variable costing net operating income by $29,100. The absorption costing net operating income will be lower than the variable costing net operating income by $101,100. The absorption costing net operating income will be higher than the variable costing net operating income by $29,100. The absorption costing net operating income will be higher than the variable costing net operating income by $101,100.

Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year $ 200 Selling price Direct materials Direct labor Variable manufacturing overhead $76 $ 50 Multiple Choice $ 10 $8 Sales commission Fixed manufacturing overhead $ 291,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? The absorption costing net operating income will be lower than the variable costing net operating income by $29,100. The absorption costing net operating income will be lower than the variable costing net operating income by $101,100. The absorption costing net operating income will be higher than the variable costing net operating income by $29,100. The absorption costing net operating income will be higher than the variable costing net operating income by $101,100.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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