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Assume the following Information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year
Assume the following Information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 73 Direct labor $50 Variable manufacturing overhead $ 10 Sales commission $ 8 Fixed manufacturing overhead $ 288,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating Income? Multiple Choice The absorption costing net operating Income will be lower than the variable costing net operating income by $28.800 The absorption costing net operating income will be lower than the variable dating net operating income by $100,800, The absorption costing net operating income will be higher than the variable costing net operating income by $28.800 The absorption costing net operating income will be higher than the variable costing net operating income by $100,800, 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 10,800 units and reported absorption costing net operating income of $38,000. What is the company's variable costing net operating income in its first year of operations? Multiple Choice $33,600 $27600 $53,600 $17,600
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