The level of inventory of a manufactured product has increased by 8,413 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $6.00 Unit operating expenses of the period 1.00 4.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $50,478 increase Ob. $50,478 decrease Oc. $84,130 decrease Od. $84,130 increase

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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The level of inventory of a manufactured product has increased by 8,413 units during a period. The following data are also available:
Varlable
Fixed
Unit manufacturing costs of the period
$11.00
$6.00
Unit operating expenses of the period
1.00
4.00
The effect on operating income if variable costing is used rather than absorption costing would be a(n)
Oa. $50,478 increase
Ob. s50,478 decrease
Oc. s84,130 decrease
Od. S84,130 increase
Pre
Submit Tes
Transcribed Image Text:The level of inventory of a manufactured product has increased by 8,413 units during a period. The following data are also available: Varlable Fixed Unit manufacturing costs of the period $11.00 $6.00 Unit operating expenses of the period 1.00 4.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $50,478 increase Ob. s50,478 decrease Oc. s84,130 decrease Od. S84,130 increase Pre Submit Tes
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