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Acme Company produces a single product. During the current year, Acme produced 8,000 units and sold 6,200 units. There were no units in beginning inventory.
Acme Company produces a single product. During the current year, Acme produced 8,000 units and sold 6,200 units. There were no units in beginning inventory. Acme's total variable manufacturing costs were $680,000 and its total fixed manufacturing overhead costs were $1,000,000. Which of the following statements is true? The cost of the items in ending inventory is $210 per unit under variable costing. Ending inventory is $153,000 lower under variable costing than under absorption costing. The cost of the items in ending inventory is $125 per unit under absorption costing. Operating income is $225,000 higher under absorption costing than under variable costing None of the above statements is true
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