La Lisa uses FIFO for inventory costing: Beginning Inventory 300 units Units Produced 600 Units Sold 600 Prior year Budgeted Fixed Overhead Rate P 50/unit Current year Budgeted Fixed Overhead Rate P 44/unit Which of the following statements is true about the difference between absorption-costing and variable-costing operating income? Absorption-costing is P 1,800 less than variable-costing operating income. Absorption-costing is P 1,800 more than variable-costing operating income. Absorption-costing is P 15,000 less than variable-costing operating income. Absorption-costing is P 15,000 more than variable-costing operating income.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following statements is true about the difference between absorption-costing and variable-costing operating income?

La Lisa uses FIFO for inventory costing:
Beginning Inventory
300 units
Units Produced
600
Units Sold
600
Prior year Budgeted Fixed Overhead Rate
P 50/unit
Current year Budgeted Fixed Overhead Rate
P 44/unit
Which of the following statements is true about the difference between
absorption-costing and variable-costing operating income?
Absorption-costing is P 1,800 less than variable-costing operating income.
Absorption-costing is P 1,800 more than variable-costing operating income.
O Absorption-costing is P 15,000 less than variable-costing operating income.
Absorption-costing is P 15,000 more than variable-costing operating income.
Transcribed Image Text:La Lisa uses FIFO for inventory costing: Beginning Inventory 300 units Units Produced 600 Units Sold 600 Prior year Budgeted Fixed Overhead Rate P 50/unit Current year Budgeted Fixed Overhead Rate P 44/unit Which of the following statements is true about the difference between absorption-costing and variable-costing operating income? Absorption-costing is P 1,800 less than variable-costing operating income. Absorption-costing is P 1,800 more than variable-costing operating income. O Absorption-costing is P 15,000 less than variable-costing operating income. Absorption-costing is P 15,000 more than variable-costing operating income.
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