The level of inventory of a manufactured product has increased by 8,417 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $8.00 Unit operating expenses of the period 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $75,753 decrease Ob. $75,753 increase Oc. $67,336 increase Od. $67,336 decrease

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The level of inventory of a manufactured product has increased by 8,417 units during a period. The following data are also available:
Variable
Fixed
Unit manufacturing costs of the period
$11.00
$8.00
Unit operating expenses of the period
4.00
1.00
The effect on operating income if variable costing is used rather than absorption costing would be a(n)
a. $75,753 decrease
Ob. $75,753 increase
Oc. $67,336 increase
Od. $67,336 decrease
Transcribed Image Text:The level of inventory of a manufactured product has increased by 8,417 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $8.00 Unit operating expenses of the period 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) a. $75,753 decrease Ob. $75,753 increase Oc. $67,336 increase Od. $67,336 decrease
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