Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units: Per Unit $75 $ 50 $ 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Multiple Choice If the company's variable costing net operating income during its first year of operations was $20,000, what was its absorption costing net operating income or loss during its first year of operations? O $20.000 $140,000 $80,000 Per Year $(40,000) $ 300,000
Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units: Per Unit $75 $ 50 $ 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Multiple Choice If the company's variable costing net operating income during its first year of operations was $20,000, what was its absorption costing net operating income or loss during its first year of operations? O $20.000 $140,000 $80,000 Per Year $(40,000) $ 300,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...
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