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Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units: Per Unit Per Year
Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units:
Per Unit | Per Year | |
---|---|---|
Direct materials | $ 75 | |
Direct labor | $ 50 | |
Variable manufacturing overhead | $ 10 | |
Fixed manufacturing overhead | $ 300,000 |
If the companys absorption costing net operating income during its first year of operations was $80,000, what was its variable costing net operating income during its first year of operations?
Multiple Choice
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$40,000
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$140,000
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$20,000
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$120,000
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