Question
A company manufactures and sells a single product. Planned and actual production in its first year of operation was 100,000 units. Planned and actual costs
A company manufactures and sells a single product. Planned and actual production in its first year of operation was 100,000 units. Planned and actual costs for that year were as follows:
| Manufacturing | Nonmanufacturing | |
| Variable | $600,000 | $500,000 |
| Fixed | $400,000 | $300,000 |
_____3. Using absorption costing, what was the companys operating profit?
A. $750,000
B. $900,000
C. $975,000
D. $1,020,000
_____4. Using variable costing, what was the companys operating profit?
A. $750,000
B. $840,000
C. $915,000
D. $975,000
***There is no selling price provided***
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Auto Body And Repair Industry IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304131661, 978-1304131669
