The level of inventory of a manufactured product has increased by 7,871 units during a period. The following data are also available: Variable Fixed $12.00 $7.00 1.00 4.00 Unit manufacturing costs of the period Unit operating expenses of the period The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $55,097 increase Ob. $55,097 decrease Oc. $86,581 increase Od. $86,581 decrease

The level of inventory of a manufactured product has increased by 7,871 units during a period. The following data are also available: Variable Fixed $12.00 $7.00 1.00 4.00 Unit manufacturing costs of the period Unit operating expenses of the period The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $55,097 increase Ob. $55,097 decrease Oc. $86,581 increase Od. $86,581 decrease

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 3BE: Variable costingsales exceed production The beginning inventory is 52,800 units. All of the units...

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