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Assume a company has variable manufacturing costs of $20 per unit and total fixed manufacturing overhead per period is $150,000. In its first year of
Assume a company has variable manufacturing costs of $20 per unit and total fixed manufacturing overhead per period is $150,000. In its first year of the operations, the company produced 12,500 units and sold 11,000 units and reported variable costing net operating income of $20,000. What is the company's absorption costing net operating Income in its first year of operations? Multiple Choice $38,000 $28.000 $36.000 $56.000 Assume that a company maintains no beginning Inventory. It produced 4,000 units and sold 3,800 units of only one product for a price of $130 per unit. Its unit product cost under absorption costing Includes variable manufacturing costs per unit are $80 and its fixed manufacturing overhead per unit is $24. Its variable selling and administrative expense is $12 per unit and its fixed selling and administrative expense is $50,000. What is the company's net operating income under absorption costing? Multiple Choice $3,200 $5,200 $4,200 $2,200 Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8.000 units and then produced 8,000 units and sold 10,000 units during its second year of operations Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Per Unit Per Year $75 $50 $10 $300,000 If the company's absorption costing net operating Income during its second year of operations was $20,000, what was its variable costing net operating income during its second year of operations? Multiple Choice $140,000 $80,000 ${40,000) $40,000
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